Among the methods of acquiring a car, buying is the most commonly known, however there is leasing which is also a viable method and many people have come to prefer this method as well. Inn leasing, the client who is interested in leasing the car goes to a car dealer and identifies a car that he/she would like to lease and then proceeds to look for a leasing company which will go to the car dealer to purchase the car on behalf of the leasing client in this case known as the lessee. Once they agree on the leasing terms and cost as well as the duration of time in which the client wants to lease the particular car.
The car leasing company then buys the car from the car dealer and pays for it in full after that they are left with the lessee who will come into contract with the car leasing company and they have to make out the period of the lease. It is important to note that no leasing company can accept any lease that comes bellow a period of two years. The period of lease for all types of cars is between two and four years. The car leasing company makes sure that the lessee is responsible enough to take care of all the other requirements of the car including licenses, basic maintenance and repair during the period of use.
The payment of the car lease can be made in installments on monthly basis or quarterly or even semiannually according to the client’s ability and the company leasing the car. It is however important to note that the financing of such car leases can also be done by many companies depending on the terms of lease and the client’s credit rating and score. Just like any other financing, the car leas financing will only be possible if the client meets all the set regulations necessary considering that it is a business like any other and the financing company must be guarantee that its money is not lost in the process.
The main advantage of leasing a car as opposed to buying it completely is in the fact that you do not have to pay large sums of money at once; the other main advantage is getting to use a new car model after every two years as you can change the car after the expiry of every leasing period.