The cost of buying a car is very high, regardless of whether this is a new or used vehicle. Many people who choose to buy brand new cars are often shocked about the rate of depreciation that happen; there are a lot of people who lose a great amount of money when buying new vehicles. As a result of this many people have now started to lease vehicles from organisations. The majority of car companies will now offer leasing a agreements; these are deals that are usually brokered by third party finance companies. The finance company will purchase the car and will then lease it to an individual for a monthly fee. Ê A lease deal will usually be put in place for a fixed period of time, usually these are between twelve and thirty six months. The cars that are offered for leasing are usually brand new cars that do not hold any mileage. Some companies will require a deposit but there are also finance arrangements available for people without a deposit. Once the leasing arrangement has been put in place it is down to the individual taking the car to make the monthly payments. A leasing agreement is put in place which is actually a contract; on this basis a person is contractually expected to make their payments on time. Ê As car leasing is a form of financing some people may struggle to get an agreement if they have a bad credit history. Before a car leasing agreement is put in place the finance company will carry out background checks in order to establish whether the person is worthy of the agreement. Some specialised dealers will offer finance agreements to individuals who have a bad credit history. Quite often these agreements will have to be secured against an asset. Ê Some car leasing agreements will arrange for the car to be handed back at the end of the contract; for example a person will make payments for three years and then car will return. In such cases a person will normally then take out another leasing agreement on another car. There is also the option to buy the car at the end of the agreement; a broker will usually state what the final payment for the car will be at the end of the contract. Some lease agreements will be left open allowing the person decide at the end of the agreement whether they wish to buy the car or not.
What is Car Leasing?
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