Leasing is an alternative solution to buying a car. With leasing, it is possible to use the car fully with a low financial burden. Leasing a car is very easy and much cheaper than renting a car to buy a car. When leasing, you pay off the loss in value and not the entire value of the car.
Importance of leasing
Leasing represents a medium to long-term transfer of use against rent. It is important to clarify in advance whether it is possible to take over the vehicle, how many kilometers can be driven and what condition the car should be in when it is returned. A contract is concluded between the lessor and the lessee. This contract clarifies the conditions of use. The lessor is either the manufacturer or an external provider. Very often there are at the vehicle manufacturers or in car dealerships Leasing offers.
The leased vehicle remains the property of the lessor. The lessee uses it against payment of the agreed rate. The contract is concluded for several years. The most common terms are 24 and 36 months. The contract cannot be terminated during the agreed term. An extension of the contract is possible after the expiry. The lessee can also take over the vehicle after the end of the contract.
Advantages and disadvantages of leasing
When leasing, only the loss in value is paid off, not the total value of the vehicle. The monthly load is significantly lower when leasing than when buying a vehicle. You drive a new car even though the start-up capital is low. The costs can be deducted from the tax for commercial use. It is possible to customize the vehicle according to your own wishes. Very often the costs for maintenance and insurance are included in the rate. After the end of the contract period there is the possibility to take over the vehicle. Returning the vehicle is also very easy and unproblematic.
The main disadvantage is that the financial burden is there every month. They committed themselves to the contract for several years. The vehicle remains the property of the lessor. You only get the usage rights. The vehicle must be returned in excellent condition after the term. There is also a limit on kilometers. If this is exceeded, additional costs will apply.
How does leasing work?
The word leasing means renting or leasing. During the agreed period, the lessee as the user pays a monthly installment. The lessee is responsible for the upkeep and maintenance of the vehicle during the term of the contract.
With direct leasing, the vehicle is rented directly from the manufacturer. In indirect leasing, a bank or leasing company is the lessor.
The monthly leasing rate depends on many factors. For example, the choice of vehicle. The more expensive the vehicle and the more extensive the equipment, the greater the monthly rate. A vehicle that is stable in value will have a lower rate than a car that is rapidly depreciating. The contract period also affects the monthly rate.
