Some individuals need a vehicle but are not ready to purchase a vehicle. Renting a vehicle long term may become costly. Leasing is similar to renting a car over a long period of time. Individuals who cannot afford a vehicle will often select this option because the monthly payments are typically lower than purchasing a vehicle. The lessee is responsible for maintaining the car and returning the vehicle at the end of the lease according to the agreed upon contract. At the end of the contract, the lessee will often have the option to buy or the option to return the vehicle.
Consumers also prefer the option of leasing, because many occupations receive tax breaks for leasing a vehicle. This option allows the individual to drive a new car without the commitment of purchasing a vehicle. Many car companies often offer lease specials to entice customers to purchase the vehicle. The payments may be as low as $100 per month. However, the consumer may need a large down payment, as well as, a security deposit to secure the vehicle. The consumer also may be held responsible for paying mileage over a certain amount per year. Leases often involve many hidden clauses that consumers must review before signing.
Consumers are allowed to lease cars over several different lease periods. The lease periods are as follows: two, three, four, or five years in length. The three year Continue Reading...