What Is Car Leasing And Things You Need To Know Before Leasing A Car?

Car leasing refers to the process of getting a used or a new car that includes paying up just a part of car’s real cost. This is completely different from pay up for the car in entirety. Therefore, whenever you lease a car or a commercial vehicle  you only pay for part of the car you will be using for a number of years in the lease agreement. That specific “part” of the total figure you use is the total amount of depreciation your newly purchased vehicle will suffer over the same number of years. So, it is safe to say that leasing vehicles is a much safer bet either ways as compared to others. There are quite a number of leasing companies in India that offer all kind of vehicles. Whether it is about commercial vehicle leasing or premium car leasing, there are ample number of options that can be availed. Even if you need red carpet leasing services for some event, you will have them all by your side.

However, before you make any such endeavour, there are a few things that must be known and kept in mind. In case, no one warned you, here is a list of precautions that must be kept in mind:

●      The first thing that you should note about is the length and terms of lease. Usually, the term of lease goes from 2-4 years. Nevertheless, leasing contract is a completely different one. The contracts also include mileage caps.

●      The next thing that you need to know about gross capitalized cost of the car. It is the sticker price of the car and is negotiable. You wouldn’t have to pay the full price.

●      One must also ensure to find out the adjusted capitalized cost as well as residual value. All of this will help you when you give back your car at the end of the lease term. The car makers usually estimate that things like these will still be useful upon return.

●      It is the value of the car that goes down as you drive the car for miles and months. You can consider this as rental fees of the car which is also a part of the payment you make.

●      You should also know that car leasing has a big impact over your credit score. When you take up a lease it influences your credit the same manner the way car loan dies. When you apply for leasing a vehicle it leads to credit inquiry which may have an adverse effect over your credit score.

●      Make sure you also learn to negotiate the deals as it will help you in getting a better deal and lower monthly installments. Make sure you also enquire about the extra insurance costs. 

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