Why Car Leasing from Time4Leasing?
Personal & Contract Hire Short & Long Term Agreements

Leasing a car makes sense for some people.

However, it's tricky to understand. The terms can be confusing. This article explains how leasing works.
 
Time for a new car? Will you lease or buy?

Most people understand how buying a car works. Leasing, however, is a bit more complicated.

Leasing, rather than owning a car, makes sense for some people. For example, college graduates who need a new car before starting their first job might not have enough cash to make a down payment to purchase a car.

Also, some drivers need or want a new car every few years. For these drivers, leasing also is the best option.

Drive a fancier car

Or, if you want to drive a fancier car than you could afford to buy, leasing is the way to go.

Just keep in mind that if lease and never buy, you basically always have a car payment. On the flip side, of course, you also are always driving a car that is under warranty, which cuts down on your car repair costs.

But all consumers must understand how leasing works.

First think of it this way. When you lease a car, you essentially are paying for a portion of the car — the difference between what it’s worth when you lease it new, which is called the capitalized or “cap” cost, and it’s estimated value at the end of the lease agreement, which is called the residual value.

Less cash up front

Leasing requires less cash up front than buying a car. Typically, all it takes to drive a leased car off the lot is one month’s lease payment and one month’s security deposit. Also, keep in mind you still have to carry auto insurance on a leased vehicle.

If you can afford to make a larger down payment — called capitalized reduction in lease agreements — than this then you might want to think about buying a car.

Pick the right mileage that's right for you

Another thing to keep in mind: mileage limits. Your lease will specify how many miles you can put on the car without penalty. Usually the limit is 15,000 a year — or 30,000 for a two-year lease. You can choose a lower limit — say 12,000 — and lower your monthly payment. But be careful. Going over your mileage limit can cost you a bundle. Try and estimate the average miles you will be doing per year.

more car leasing related questions

More about Car Leasing : 1, 2, 3, 4, 5, 6, 7, 8, 9, 10

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Time4Leasing Solutions look at a unique approach to delivering affinity purchasing schemes to companies, individuals, clubs and associations, built on simplicity and flexibility. Time4Leasing Solutions create and support purchasing schemes most relevant to your employees or membership.