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Did you know? By taking an MTO-approved Beginner Driver Education Course at a driving school, G1 licence holders may qualify for a 4 months reduction in the 12-month minimum G1-licensing period as well as a potential reduction in car insurance premiums when buying new or used car either by financing, leasing or through bank car loan.
A Beginner’s Guide to Auto Leasing: Auto leasing is fast becoming the latest fad among those of us who are always eager to drive new models of car. Auto leasing is the easiest way to ensure that you get a chance to drive new models without paying the whole price. You can choose to buy or not buy at the end of your lease period. In auto leasing you only pay for the parts and duration you use the car but unlike auto renting you have a choice of even buying the car at the end of your lease period.
What the process involves
Auto leasing is as simple as buying a car on monthly leases but it involves less money and also the fact that you don’t need to pay a huge down payment. If you want to buy a new car but don’t have the money for either purchasing it or giving the huge down payment for the loan then auto leasing is your only savior. A lease can be cheaper than traditional car loans monthly installments.
How Is Auto Leasing Beneficial For You?
Auto leasing serves many purposes to the customer. It makes it possible for you to use the vehicle during the lease period. So, you have the car at your disposal without having to pay the market price. The money you pay as lease is the depreciation of the car’s value during the time period you will be using it. The money involved in auto leasing can be lesser than traditional car loans. A vehicle loses its value over time and on basis of how much it has run. So if you go for auto leasing you only pay the money for as long as you use it and the depreciated value of that car at the end of your lease period is not your concern. You can very well buy the car at the end of your lease period if you want to do so. It will be cheap for you as the value of the car would have depreciated by then.
Types of Auto Leasing
There are many types of auto leasing like single payment lease, subsidized by the manufacture lease, closed end lease, open end lease and so on. You can choose any one of them based on your needs or on the basis of the time period during which you would need a vehicle. There are many advantages of auto leasing which will attract you to it but there are certain disadvantages as well and you should be cautious about them. Many brokers cheat you by misleading you and quoting wrong interest rates on lease payments. You should ensure that you don’t end up paying more money than is required. Many lenders hide this rate from you and term it as something else but the truth is that there is a rate of interest involved in auto leasing. So be aware of it and clear out everything with your lender before finalizing any deal.
