Vehicle Leasing

Some people find it difficult to commit to purchasing a vehicle; when the deal is final, the buyer is obligated to paying on the vehicle for the next 5 to 7 years depending on the terms of the loan. Vehicle leasing is the solution to this; you do not have to be locked into the purchase. Leasing is, in a way, renting something.

When you participate in vehicle leasing, you are borrowing the car for a said amount of time. A car lease is similar to a rent-to-own real-estate deal. You pay monthly on the car and after about 3 years, you have the option to buy the vehicle or a specific sale price. If you decide against purchasing the vehicle, you are not penalized. The dealer will take the car back, and either, sell the vehicle as a used car, or take it back to the auction. You are then free to purchase or lease another vehicle from that same dealership, or a different one.

There are many options available for people wishing to get a car lease. Not all are the same – you have to choose the one that is right for you. There are some very great deals sometimes, for instance: lightly used cars, rental cars that have been sold, and fleet vehicle leasing. The price is substantially reduced because the car is used but most are still in tip top shape. In fleet leasing, a company that is upgrading the cars they purchase for mobile employees, sells the old, used cars at a serious bargain. These cars are very lightly used and typically are of very top end models.

Typically, a car lease such as a car lease in Sydney, offers a type called a novated lease wherein there is a great benefit of reduced tax for participants. This is done through a process called “salary packaging” a vehicle. Basically, the lender attaches the monthly leasing payment to the borrower’s payroll. The borrower is then vehicle leasing through automatic deductions from their payroll. Also, this is done on a pre-tax basis, therefore reducing the amount of money the employee/borrower is required to pay taxes on. The novated lease is a great opportunity to save a lot of money!

Vehicle leasing is a smart choice for a customer who does not want to be stuck with a car that he/she no longer wants a couple of years down the road. It is great because the participant gets a new car every 2-3 years. This is a very attractive and popular choice for businessmen/businesswomen that travel for work. Some employers will actually pay for the leased vehicle, leaving the employee without payment obligations.

Another great feature about a car lease is that repairs are usually covered. Typical maintenance and light repairs are usually discounted substantially and sometimes no charge depending on the plans available.

Leases can be very convenient and many people worldwide lease, instead of purchase their vehicles. It is always good to weigh the options and get a clear picture of the vehicle’s total cost. Either way, you will be under contract for a certain amount of time. Therefore, it is best to find a deal you can afford and feel comfortable with paying.