If you are confused between the lease and purchase option, you have nothing to worry about. This article will help you to understand the concept, easily enough.
Stripped to the very basics, vehicle leasing may be defined as the rental of a vehicle for a certain period. Many automobile dealerships offer vehicle leasing facilities as an option to the more traditional direct purchase or auto finance.
As a general rule, leasing a vehicle costs somewhat less than buying it. Albeit, there are many restrictions, such as non-customization agreements and mileage limits. You will have to take them into consideration when you make the decision to lease or purchase a commercial vehicle.
To Lease Or To Buy: Which One Is The Better Option?
There are numerous factors that will decide this. For instance, if you drive a lot of miles every year and don’t want to change the car for many years, it might not be beneficial for you. But, if you are interested in updating your fleet every couple of yours or so, a commercial vehicle lease would be just right for you provided that you have no interest in the trade-in value of your current fleet of vehicle.
Apart from that, the more time that your fleet spends on the roads, the greater the chance of an accident. In case you own the vehicle, you will have to face a substantial reduction in the overall value of the car. In case of a leased vehicle, you will not be held responsible for the deduction in value due to the accident.
The Cost of a Commercial Vehicle Lease
Unlike the list price of a vehicle, commercial vehicle leasing charges can be negotiated. In fact, there are many dealerships that typically offer zero-down lease deals as well. However, your credit history, payment history, and credit scores will play a key role in determining the lease rate and upfront payment. As a general rule, you should keep in mind that the lower the initial down payment, the bigger the monthly payments and vice versa.
Utilizing the Used Car Leasing Option
It is possible to lease a used car. However, there are certain terms and conditions. For example, most dealerships and auto finance companies stipulate that the pre-owned vehicle should not be more than four years old. Alternately, it should not have more than 48,000 miles on its odometer.
Most Car Lease Options Include Maintenance
The maintenance benefits of a leased vehicle are instrumental in the popularity of this finance model. While the specifics will vary from contract to contract, most commercial vehicle leases will cover your vehicle’s normal maintenance charges.
In light of the above, we can say that the commercial vehicle lease option is a really good investment and it can help you curtail your costs to a great extent.