Why You Should Consider A Car Finance Lease
Businesses and other commercial entities are often always in need of vehicles to use in the myriad operational undertakings of their respective companies. It is, therefore, imperative for these organizations to have means to acquire these vehicles in fast, easy, and relatively hassle-free ways. While most would go for any one of the numerous available car loan products available for businesses, there is actually an oft ignored solution, and that is a car finance lease. This is just one of the very wide range of car finance options and rental agreements made available exclusively for commercial and business customers.
What is it and how does it work?
In a nutshell, the car finance lease works in such a way that the customer is able to make full use of the car and have ownership benefits, while actual ownership of the vehicle belongs to a finance company. Basically, the customer starts by choosing a car or vehicle that they like and consider appropriate for whatever function they may have in mind. The finance company then purchases this vehicle on the customer’s behalf. The vehicle is subsequently leased to the customer at a fixed monthly rate for a specific and pre-agreed term. At the end of the term of this lease, the customer has the option to either pay the residual value on the final instalment in order to gain full ownership of the car or continue the lease. They can even trade-in the car or refinance the residual value to lease a new vehicle.
A car finance lease is generally very versatile, as it offers you a lot of flexibility on your contract. First of all, the vehicle choice is left entirely up to you, so you can choose one that most adequately fits your needs and budget. Secondly, you also have the option to choose the term of the lease, and this can be anywhere from three years to five years.
What are the fees?
The math is also very straightforward with a car finance lease. There are some costs that you will need to pay upfront, such as registration fees, stamp duty, and of course, the rental payment for the first month. Some of these upfront costs can also be financed, depending on the financier’s policies. Your monthly repayments are computed, based on some crucial factors of the agreement, such as the vehicle’s value before GST, the lease term, interest charges, duties, and other miscellaneous fees.
There is also a mandatory residual value or a balloon payment that will need to be settled at the end of the lease term. This will be based on the vehicle’s market value with depreciation at the end of the term. This residual value, however, also reduces your monthly payments, making it very beneficial in the long run.
What are the benefits?
More inFinancial Adviser
What We All can Learn from LeBron James and His Financial Strategies
LeBron James is not just a name, he is a brand in himself. The professional basketball player who plays for Los...May 31, 2020
Student Loans: Here are Some Genius Ways to be Debt Free
Paying student loan after graduating from college can make you pull your hair. For every generation it has been a huge...May 31, 2020
5 Celebrities Who Had Mortgage Issues
For us common people life is all about earning, spending, taking loans and mortgages, earning more to pay debts. We would...May 22, 2020
We Bet You Didn’t Know How Profitable These Celebrity Fashion Lines Were – Part I
Celebrity-supported fashion lines certainly don’t have the best of reputations considering Heidi Montag’s critically doomed design attempt with Heidiwood or Lindsay...May 21, 2020
These Celebrities Almost Went Broke
When we think about celebrities, we think about all the glitz and glamour, and of course the money that goes with...May 21, 2020
Summer Must-haves every Beach Bums Should Have
Summer is the best way to get those tans on and laze in some ‘vitamin sea’. Spending time on the beach,...May 20, 2020
Here is the Lowdown on the Best Days To Shop for Clothing
Besides shelter and food, clothing is know to be a basic necessity in one’s life, it does protect our bodies from...May 20, 2020
These Golden Rules will Make The Life of Early Retirees, Easy
Can you afford to retire early but are also weary of the trade-offs; moving to a smaller home or restricting your hobbies?...May 19, 2020
Students’ Financial Health Can Be Made Better in these ‘New’ Clinics
Student Debt and student debt clinics are now part of American lives. Lisa Mulhall attended a student debt clinic in Woodbury,...May 19, 2020