Leasing is a contractual arrangement between two people – often called a lessor and a lessee. A lessor is the owner of an asset, which may include property, vehicle, business equipment, and so on.
A lessee goes to a lessor to acquire the use of any of these properties for certain periods with an obligation to make rental payments. Leasing might come with specific conditions such as the one in which a lessee is duty-bound to use the asset for personal use only. Car lease likewise follows the same leasing format. No differences except that instead of properties cars are used.
Types of Car Leases
Exploring the reviews and opinions of car users on ReviewsBird.com, there are two types of car leases. Either a car is leased using the open-end format or the closed-end format. This division is further corroborated by the services of car lease companies.
Closed-end leases allow you a certain degree of freedom when you return the leased vehicle. This means you are not held responsible for additional charges other than the agreed payment except in the event of excessive damage to the vehicle and extended mileage coverage.
Open-end leases are different. This type is more capitalist than the first and often not suggested due to the charges involved. If you are returning a vehicle under this category, you’ll be accountable for not only the damages but also the repayment of the value of the vehicle at the end.
Who is a Car Lease Suitable For?
A car lease is fine but it does not work for all. If you are considering having one, you must first assess your kind of driving and personal life. Although people lease for different reasons, the following categories show how most people find it more suitable than not.
· Preservation category:
One of the greatest myths is that a car lease is only for the poor. Far from that. The rich also partake in a car lease. Albeit, they do that for the preservation of their vehicle and not because they don’t own a car.
· Benefits category:
This category of people is not necessarily after the lease itself but the benefits attached. They can be poor and can be rich. Some of the benefits of leasing include time-saving, cost-saving, tax benefits, driving the latest car, and other benefits deemed satisfying the demand of the consumers.
· Cost category:
The third and last category is those who look at leases from a cost angle. How much does it worth when compared with ownership? Is it worth the time and effort? Most times, people with financial constraints engage in car leases to afford themselves the pleasure of either driving one to make ends meet or using it as a luxury product.
In summary, a car lease is suitable for all. It only depends on your budget, preference, and what you need it for. Again, a car lease is not only for those with financial constraints. It doesn’t matter whether you have the money or not. What matters is what you need it for.