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Car Leasing Terms Explained-Part I

When buying a car or for that matter any product that is of high value, it is necessary to weigh the options to see which works out better. Is it wise to buy or to just go in for a lease contract to be signed? In case of lease, people can sit back and relax, not worrying about money or making big investments. But the only catch here is that they need to be careful while signing the contract and rechecking the terms and conditions more than once.

It is advisable to have a person who can provide consult, and who is aware of how the lease system works. This way, the person signing the lease agreement will understand the terms and conditions, knowing fully well what they are getting into. For some people lease means rent, but that is not so. Rent is only for a short term, like a couple of hours or maximum for a few days and mostly preferred when a person is going to be in that particular town only for that duration. On the other hand leasing is done for a minimum of 12months to upto 4years too.

Off late people across the globe have realised that leasing is far more beneficial than buying in many ways and so opt for that. There are short term lease plans and long term, so one can opt for the one that suits their needs and requirements. Sometimes, if a person is working in a big corporate firm, the company might take on the lease payment, and deduct it from the employee’s salary. This is an assurance for the leasing company that their payments will be made on time. the agreement wil be signed between the company and the leasing company, but with the employee as being responsible for the car.

When going in for a car lease, the person should keep in mind that credibility will be an important issue. This refers to the credit standing of the person applying for the lease. They need to have a sound financial background, only then will their lease request get processed.  For students who wish to go into leasing a car during their academic duration, they need to provide proof that they can meet the payments. This will be a letter given by their bank or their current employer.

Getting into a lease agreement means the person taking it is responsible for the car for the duration of the lease. They need to make sure there are no accidents or criminal acts committed while owning the car. This will reflect badly on their record and make them ineligible for any further leasing agreements. Therefore, even though the car does not belong to the person, they still own it for the time period mentioned on the contract. And finally, one can also explore leasing options with their own car dealers. They will get new cars as and when they are launched, which will come up for lease as well. 

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