What happens when you lease a car?

When you have decided that it is time to get a new car you can buy it outright, finance it over a period of time or lease it. If you purchase the car, either outright or through a financing agreement you will eventually own the car, not so when you lease. Both owning and leasing have both advantage and disadvantages, leasing is ideal if you cannot afford to purchase, really what leasing boils down to is it’s a type of long term rental.

When you lease a car from a Suffolk Ford dealer you are really paying to use the car for a specified time period which usually is three years. Once the lease period is exhausted you simply return the car to the dealer. Most people who lease find it very convenient and when they return the car they usually lease again. Although you will be dealing with the Suffolk Ford dealer you are not leasing directly from the dealer, you are actually leasing from a leasing company.

When you lease a car it is important to understand you are not buying it. Monthly payments for a lease car tend to be less than payments would be if you were to be purchasing it and paying off a loan, so much so that after the normal three year lease the average individual will have paid only half the cars value. Lease cars are priced higher than cars which are available for sale, once the three years lease period is up the car is returned and that is the end of it.

It is possible to purchase the car, for those that want to avail of this option the lease contract normally includes a clause to that effect. The disadvantage to this however is that the price of a leased car is normally considerably higher than the actual market value, for this reason the majority of people who opt for a lease just return the vehicle at the end of the lease.

One of the fact is that the upkeep expenses are low, when you leasing a car from a Suffolk Ford dealer. The majority of leasing companies provide a full warranty for the lease period, there are also advantages with tax for those who lease cars rather than purchase them for business purposes. The only real disadvantage with a lease is that you are tied in for a full three years, in the event you want to change the car prior to the termination of the lease there are penalties that need to be paid and when it’s all over the lessee has nothing to show for the payments made.

Be the first to like.

Be Sociable, Share!

    Pin It on Pinterest

    Share This