Negotiate for a Car Lease: Check out leasing options
The concept of Car Lease Finances is different from car finance, which finances the purchase of a car. Auto leasing, pays for the use of a car, truck or van over a period of time and is different from renting. A car may be rented for hours or days, but a minimum period of leasing is 2 years. There are two kinds of car lease finance that you need to know about.
One is a Closed End Lease: Whereby the person who leases the vehicle (lessee) returns it at the end of the lease period to the leasing company. In a closed end lease the lessee has no liabilities other than paying for any damage or excess mileage (agreed upon earlier).
In an Open End Lease: The lessee bears all the financial risks associated with the leasing of the vehicle. An open-end lease is best suited to commercial businesses, because the market value of the car is fixed at the end of the lease contract. This value is compared to the original value of the car, and you pay the difference in values; which could set you back quite a bit, financially.
Monthly payments on leasing are 30%-60% lower than other kinds of loans for the same time period. On a lease, you only pay for a portion of the car’s value over the lease period. Down payments on a lease are usually much smaller as well. Normally you pay a deposit of your first monthly payment, as well as tax, title and registration fees. You can also put down a larger deposit, to reduce your monthly payments. ¼/p>