Things to Consider If You Wish To Lease a Car in India
If you are still confused about whether to lease or to buy, then this is it. Most of us require financing in order to make a purchase and now you can do the same with leasing a car. It is one of the most economical options available in the market and refers to hiring/ leasing a car on a contract basis in return for monthly instalments. A car lease should not be confused with renting because leasing is for a fixed duration while the duration of rentals will be flexible. Also, you will have to return the car as soon as the fixed period is over.
This is one for the perfect options for all those who wish to trade for a new car every two to three years. Mentioned below are a few steps that are required when you decide to lease.
- How does it work?
If you have never leased a car previously, then you should know that the payments are always based upon the difference of the capital cost and the residual value. You can also avail the option of purchasing the car at the end of the lease.
The leasing company sets the money factor and the residual value but you have the advantage of negotiating the capital cost. This way you can try and lower down the cost similar to how you purchase a car.
- The mileage
Higher the mileage, lesser is the residual value; therefore, you should always maintain an evaluation sheet that contains all your kilometres driven. Excess mileage is less attractive, especially for car lease, even if you purchase the car. It depicts loss of value because higher the mileage, the lesser it is worth. The best option here is to lease the car because you do not own it.
- End of the deal
When the lease period ends, you have a number of options such as purchasing the car, selling it, trading-in or turn-in. If you purchase the car, then you can pay the remaining lease end value which is informed to you at the beginning of the lease period. If you wish to sell the car, you can simply pay the balance that you owe to the leasing company.
Car leasing is worth considering and is an attractive option for all those who wish to own a car for a certain period.