Car leasing is a contract drafted by a car leasing agency to a potential client who wishes to use a car without owning it that is for an agreed period of time whereby the client has to agree to the terms of the contract and sign them before the car is leased to him. Normally there would be charges imposed on the person wishing to lease the car in any auto leasing agency. The charges are not always constant or the same they vary due to a number of factors.
Factors that determine the amount to be paid when leasing a car
.? The type and model of the car you wish to lease. For instance a person wishing to lease a BMW 360 would not be charged the same cost as a person wishing to lease a range rover or a limousine. You realize that these are expensive cars and the leasing company is taking a very big risk to lease them and may suffer catastrophic losses if any accidents were to take place and cars get completely destroyed.
.? The mileage that you wish to travel is another major factor that the auto leasing car dealers consider when leasing. In the leasing contract you will find that it is clearly stated the maximum mileage you are supposed to cover as per the amount you are paying and any additional mileage will be charged separately depending on the auto liising agent’s terms normally 18-25$ cents per mile.
.? The duration in which you would like to use the car. Under this contract mileage is no longer an issue what will determine how much you will be required to pay is duration in which you intend to use the car. This contract mostly favors those who wish to lease the cars for more than 6 months as this will prove to be less costly.
Most people prefer to lease cars instead of buying them since leasing is much cheaper and provides you with an opportunity to drive newer and much better car models without struggle. However it is very important to keep in mind that this can sometimes tend to be more expensive than the actual buying of the car. Before leasing a car you should make sure that you have read the terms of the leasing contract carefully and weigh you choices considering how you intend to use the car. Any mistake that you will make might make you suffer deadly blows in terms of the leasing cost.
Common mistakes that you should not make when leasing a car
.? It is not advisable to pay too much money upfront when leasing. This is very dangerous in case of any inconveniences there would be no refunds and you won’t have a car to use.
.? Although the car does not belong to you it is very important to maintain the car as maturely as possible since you will be liable to any damages on the rather than tear and wear of the moving engine parts.
.?Leasing cars for too long is also another problem which will see you making many monthly payments over the period which will exceed the actual cost of the car. It will be wiser to buy the car instead of leasing if you intend to use it for more than a year.