Auto Lease Trader Articles

Auto Lease Trader

For about a quarter of a century now, car leasing is a very popular option of a new car purchase. Private persons and businesses alike use this unique form of a combination rent and loan vehicle acquisition for several reasons.

To really understand what a lease is, it is best to think of it as a time limited rental with a purchase option at the end of the term. But since the original lease option got introduced, several hybrid forms have developed out of this installment payment alternative and many prefer it when compared to a regular car loan.

A car loan usually includes higher payments and very often higher interest rates. In addition, a lease is in many countries applicable for tax deduction, which further increases the value of this purchase form.

For private persons this lease idea brings a very welcome option. Not everybody wants to physically own a car. Most people like to drive new cars and also many like to stay up to date with the latest technology and switch their lease car almost yearly.

Many businesses lease the whole vehicle fleet in order to minimize immediate expenses and to benefit from the constant tax write-off possibilities.

The downside of leasing a vehicle, be it a car or a truck, for business or for private use, is that after the lease is up, the lessee is not the owner of the vehicle, but the leasing company.

Depending on the lease agreement, the lessee may purchase the vehicle from the company, but he is not obliged to, again depending on the lease. The money paid is not refundable and the car goes back to the actual owner. In case that the lessee decides to purchase the vehicle at the end of the lease term, the price for the car is usually more than he would pay on the open market. That is why many lease takers decide not to purchase the car, but to return it to the leasing company and re-enter into another lease agreement for a new car.

Many possibilities are available for such deals, even the availability to lease the car for two years, and then return it to the lease company in order to buy a new car with another lease agreement.
Such lease cars are then being offered on the open market for really low prices and in many cases present a real bargain, because the cars have been regularly serviced, which is a stipulation of every lease agreement, and are in a very good condition.