Private, business or company car leasing allows you to drive a car of your choice without actually having to pay a huge sum of money and purchase it. Leasing out a car requires you to pay a small down payment which is followed by payments on a monthly basis till the lease duration ends. Once this lease expires, you are supposed to return it.
Who can lease a car?
Before you go out and lease a vehicle, you must be sure that business or private leasing makes sense in your case. One of the disadvantages of leasing out a car is that if you do so for a long period of time, say ten years, the cost of leasing vehicle for this period is bound the exceed the cost price of a new car. On the other hand, leasing out a vehicle does make sense in the following conditions:
If you fulfill most of these requirements, you are qualified for company or private car leasing. It is important to understand that leasing out a vehicle is very much like renting a house and that it requires great attention to detail on your part on several factors such as pricing, maintenance and so on.
Things to consider when leasing a car
As mentioned earlier, you must realize that leasing a vehicle only makes sense if you don't have the cash to buy a new car or are looking for a particular model that isn't within your budget. The reason for this is that over a period of time, you would have paid more towards private or company car leasing that what a brand new vehicle would cost at present and this is not the wisest form of long term planning.
Again, when you lease out a car, you should also be careful to maintain it like your own. Any damage done to the car's appearance or performance will land you in a soup. You will have to pay penalties for these damages. Additionally, if you cross the mileage limit for the car, you will also have to pay an extra amount of money on every mile.
It is therefore important to check for all these peripheral costs when going for business or private car leasing. Overshooting the limit on miles or scratching the vehicle is not something that is done intentionally but these things do happen. It is therefore better for you to be well aware of the price you will pay for these unaccounted situations.
