Leasing is an excellent option for getting the perfect car to drive if you’re on a tight budget. For someone purchasing the vehicle, a car lease allows for lower, scheduled payments, compared to a car loan.
Car leasing allows the driver to simply return a car and select a new model when the lease expires, letting the consumer pick and drive a new car every few years without worrying about selling his old car. A car lessee won’t need to trouble himself with the future value of the leased vehicle, while a car owner does. Flexible contract options for car lease include:
Contract extension - if you like the car for its performance, comfort, fuel economy, or even for sentimental reasons, then you can extend the contract for another year or term. At any time before or at the expiration of the lease, you can change the car for a newer model, or even change to a completely different manufacturer. Lastly, you have the option to buy the car, and have easier payment terms, even if you end up paying a bit more than the retail value of the car.
With some leasing companies, you can make payments on a yearly, monthly, 3-, 4-, or 6-month,basis. You therefore have the flexibility to set up the payment terms on a specific schedule that you find most convenient.
Lease agreements usually state an early termination fee (You pay extra if you end the lease before it expires), and limit the number of miles a lessee can drive (typically from 12,000 to 15,000 miles per year). If the mileage allowance is surpassed, penalty fees will apply. You can get a higher mileage allowance for a higher payment. Contracts usually specify how much wear is allowed, and penalty fees apply if the vehicle is worn down beyond the agreed terms.
When a car lease expires, the customer may either return the vehicle for a new vehicle and another lease contract, or he may choose to actually buy the car.
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