A Beginner’s Guide to Leasing a Vehicle

A Beginner’s Guide to Leasing a Vehicle
A Beginner’s Guide to Leasing a Vehicle
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Most people don’t have enough money to buy a vehicle by making a lump-sum payment. As a result, many people prefer leasing over making a direct purchase. Leasing a vehicle is a better option, since you don’t have to pay the full amount upfront. All you have to do is make the down payment, which begins from around 20% of the total lease value. After that, you have to pay the monthly lease rentals to the leasing company. Even though most people lease vehicles directly through leasing companies, many banks also offer car financing services.

Many companies also offer Kent car and truck leasing and contract hire services. However, there are many important things that you need to keep in mind when leasing a new vehicle.

Check the Loan Rates

The leasing company won’t give you the car on the market value. Instead, the lease rental will be calculated separately using an accounting formula, and a proper lease schedule will be created. The net present value of the car in the future will be used. That’s why you will need to pay a greater sum of money in total for leasing a vehicle. Before leasing a vehicle, you should compare the loan rates offered by reputable banks and leasing companies. This will give you a better idea about the different loan rates charged by companies and banks, allowing you to select the most affordable option.

Compare Value Added Options

When you purchase a car on lease, the leasing company will also provide a series of value added options. For instance, you might get a discounted premium for the first two years. You should also consider the lease period as well. Do you really want to continue making payments for the next five or six years?

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