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How To Lease A Car For Your Business? < Vehicles Business Information By Mastbusiness.com

Leasing a car means primarily means, letting a car provide services for some other person other than its owner under an agreement or a term of contract. It is commonly offered by dealers as an alternative to vehicle purchase. The key difference in a lease is that after the lease expires, the lessee must return the vehicle to the dealer or buy it. It is different from renting. So people usually get confused with the terms leasing and renting. The period for which an automobile is kept on lease is known as the lease term. This lease term, generally expressed in number of months, in most of the cases is found to be 24, 36 or 48 months.

Difference Between lease and buy:

When we buy a car for its entire cost, for that we make a down payment regardless of how many miles we drive it. Along with this we have to pay taxes, interest rate fixed up by our loan company. Then we start with paying installments on monthly basis.

But when we go for lease, only a portion of vehicle’s cost is paid, for the time we’re driving it. Leasing is also different from renting. With leasing we need not have to pay down payments. We only have to pay sales taxes on our monthly installments.

Lease Payments Vs Loan Payments:

Lease payments constitutes of two parts, a depreciation charge and a finance charge. Depreciation part consists is given to the leasing company for the portion of the vehicle’s value that is lost during our lease. Whereas finance part is the interest on the money that is tied up by the lease company while we were driving it. Loan payments also constitutes of two parts, a principal charge and a finance charge. Principal charge is very much similar to lease payments. The principal pays off the full cost of vehicle, whereas the finance charge is loan.

Why lease?

It is easy to pay short-term monthly leasing cost then the entire cost of buying. If we enjoy driving a new car every two or three years, want lower monthly payments, it’s like having a car that has the latest safety features and is always under warranty. If we don't like trading and selling used vehicles, don't care about building ownership equity, drive an average number of miles, properly maintain cars, we are willing to pay more over the long haul to get these benefits, and understand how leasing works, then we should lease. Most lease companies allow leases to be transferred to someone else by simply paying a transfer fee. Since the original lessee got a good deal — a deal that may not be possible today — anyone taking over the lease will get the same features of deal, same low monthly payment, with no down payments, no sales tax, and in many cases, incentive from the "seller."

Business now days is all about investing your money at the right place at the right time and leasing a car for your business gives you an opportunity to invest your money in your business instead of paying it on a car.

Getting your next car on lease could not be easier. Many lending firms and banks are now offering great rates and terms on the internet, it is no wonder why so many people are choosing to lease a car instead of buying it. This gives you an upper hand when negotiating with the dealer. Here are the steps to go online and get that next car loan. Many banks and private lenders have special loan offers for business firms.

Do Some Research on where you can get the best offer on leasing a car for your business. Go to some local car leasing firms and do some research on their schemes. This gives you an upper hand when negotiating with the dealer. Chose the Terms that suit you the most and decide the terms that are right for you. Maybe securing the lowest interest rate is all that matters to you or maybe your main concern is getting the lowest EMI (every month installment).

The only way to drive an old model car at the lowest possible cost is to take over someone's existing car lease. It's always less expensive than buying and less expensive than taking out a new lease. It offers advantages to both buyers and sellers. For the buyer, lease amount will mostly be lower than payments on a car loan. A lessee does not have to worry about the future value of the vehicle. He can simply return a car and select a new model when the lease expires.

Useful external resources

Eagle Oak Car Leasing and Contract Hire

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