Car Leasing

Introduction

Leasing is a process by which a firm can obtain the use of a certain fixed assets for which it must pay a series of contractual, periodic, tax deductible payments.

The lessee is the receiver of the services or the assets under the lease contract and the lesser is the owner of the assets. The relationship between the tenant and the landlord is called a tenancy, and can be for a fixed or an indefinite period of time (called the term of the lease). The consideration for the lease is called rent. A gross lease is when the tenant pays a flat rental amount and the landlord pays for all property charges regularly incurred by the ownership from lawnmowers and washing machines to handbags and jewelry.

Under normal circumstances, a freehold owner of property has the liberty to do what they want with their property, including destroying it or hand over possession of the property to a tenant. However, if the owner has surrendered possession to another (the tenant) then any interference with the quiet enjoyment of the property by the tenant in lawful possession is unlawful.

Similar principles apply to real property as well as to personal property, though the terminology would be different. Similar principles apply to sub-leasing, that is the leasing by a tenant in possession to a sub-tenant. The right to sub-lease can be expressly prohibited by the main lease.

Vehicle leasing is the leasing (or the use of) a motor vehicle for a fixed period of time. It is commonly offered by dealers as an alternative to vehicle purchase but is widely used by businesses as a highly cost-effective method of acquiring (or having the use of) vehicles for business, without the usually needed cash outlay. The key difference in a lease is that after the primary term (usually 2, 3 or 4 years) the vehicle has to be returned to the leasing company for disposal.

What is car leasing?

What is leasing? It is a slightly modified form of loans. If you need to buy something, you can borrow a certain amount of money from the bank and buy the product in question. When leasing, the leasing company pays your product in question, which then pay it in installments.

Rates are lower than what you pay for a car loan, and amount of advance is also smaller. Rates are set according to market price of the car, the interest margin wear (the degree to which the car will lose value over its use), etc. At the end of "rent" you can buy product at a very low price and thus finally become the rightful owner of the car.

Or, if you changed your mind, you can do a lease for another car. The method is called back and buy one of the big advantages of leasing. When you buy a car with either full payment or in installments, you become the owner. Are you stuck with that car?

A leasing is much more convenient because you can renegotiate and change the brand of car. The only condition is to come from the same dealer. Car dealers in Romania working with many 5-6 leasing companies, and the system can be applied and used cars, not only for authorized dealers.

What are the Advantages of Leasing?

Lower Monthly Payments

Because you only pay for the portion of the car or truck that you actually use, your monthly lease payments are 30%-60% lower than for a purchase loan for the same car and same term.

No Down Payment

Car leasing provides the option of making no down payment, although you must still make the first month's payment and official tag and registration fees. Some promotional lease deals require a down payment to get the deal.

More Cars, More Often

Since monthly lease payments are lower than with buying, you get more cars for your money and drive a new vehicle every two to four years, depending on the term