Leasing a car means that a person is acquiring the rights to own a car for a specific duration of time. Car leasing is offered by a number of domestic and global auto makers as an alternative to purchasing the vehicle. This practice has existed in the international auto market since quite a long time and has been gaining pace continually. Business or big firms generally lease a car for commercial as well as practical purposes for a fixed duration of time as this process does not involve cash outlay. Interestingly, prospective buyers can also lease a car of their own choice, drive it and then return it to the manufacturer after the agreement ends. Leasing a vehicle is almost similar to car renting, except there are some minor differences in the agreements and clauses of both the processes. There are a number of ways through which people can obtain best deals when they plan to lease a car and they are as follows:
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Each auto maker launches a number of lucrative schemes with its new cars and these can be enquired at the nearest dealerships. People can ask the dealers as to what types of leasing schemes they have in the portfolio and then opt among the best.
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People should be straightforward when it comes to car leasing agreements. There are a number of clauses involved in these agreements, such as mileage, duration and capital cost of the car. Such documents usually have a clause of mileage limit, which is usually 10000 – 15000 km per year. One should not forget to haggle and try to increase the limit after negotiating with the dealers.
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When people plan to lease or rent a car, they should keep in mind not to pay excess money as an initial payment. Usually, people are asked to pay around 15-20 percent of the vehicle's cost as the down-payment and thereafter the monthly instalments are continued. One should always first negotiate on the buying price of the car and then only tell the dealers about the leasing plans. This way, the monthly instalments can be reduced to minimum and people don't have to shed all their expenses.
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Before car leasing, one is always advised to enquire about the safety features and specifications of the model. A vehicle with high fuel economy, high dependability, extra safety features and better specifications can also help in reducing the lease costs.
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During car renting or leasing, it is suggested that one should always enquire about the residual value of the vehicle. The residual value is the actual value of the car after it is being used and its lease contract has ended. Manufacturers or dealers can increase the residual value in order to obtain maximum profit from the lease contract. This value for used cars should be calculated and the same can be evaluated through a number of portals.
There are also certain penalties involved in the car renting contract that are implied if the mileage limit is exceeded or the car's condition has been kept poorly. These clauses can be modified to a certain extent after negotiation so that there are no issues occurring for the buyers on later stages.
