To lease a car for a particular purpose for a particular period of time is termed as car leasing. The dealers who deal in the leasing of the car serve it as an option to the original buying of the car. Cars are generally leased for the purpose of commerce and to lay an impression on the business partners.
The underlying principle of car leasing
Car leasing render benefits to both the parties, that is, to both the buyers and the sellers. When it comes to the buyer, the amount payable as lease will not turn out to be as thick as the car loan. Sales tax is payable every month only. For many customers, leasing is the most convenient alternative because all they have to do is to return the car and grab a novel model when the old one is out of date. This aids the consumer to enjoy the benefit of driving a new car without harbouring the stress of getting rid of the old one. Leasing drives in a lot of benefit for the user. A businessman will be able to grab the tax benefits if he becomes a lessee.
The seller is also not drawn back when it comes to drawing advantage from leasing the car as he will be earning money from the cars he already owns. At the end of when the original lease has ended up, the vehicle can be sold with the id of vehicle marketing. With the aid of leasing, the seller will get hold of a good number of customers and this will aid him in expanding his profit margin.
Agreement of the lease
An agreement of the lease is somewhat a different one. It specifies the quick fees for termination and it draws the line pertaining to the margin of distance the lease has to drive. If the limit of the mileage goes off the handle then the fees will be applied and the lease will have to pay the extra amount that is required. The lease agreement is such that it will permit a particular amount of wear and if that limit of wear is crossed then the lease, anyhow, will have to pay the price for it in the form of extra fee. When the term of the lease has arrived at its final point then the lease has got two options in hand: firstly, he must either return the vehicle to the owner or secondly, he can pay the entire amount of the vehicle and can become the sole and the new owner of the car.