In general Car Leasing option means a rent paying method for possessing vehicle over a specific time period and then returning it to the dealer company. This phenomenon is handsomely increasing in number nowadays. Lease companies fix the possible monthly payments based on the actual price of the automobile in comparison to the resale value at the end of the term. This, in turn, has made some of the costly and demanding cars more affordable.
Different Leasing Options Offered in the Market includes:
Personal contract hires [PCH]: Leasing a car is popularly known as personal contract hire [PCH] when it lends to private individuals only. Here one enjoys the merits of owning a desired car for a specific time span as mentioned in the personal contract hire agreement without constantly being anxious about its resale values.
Business Contract Hire [BCH]: BCH can be economical for companies opting for new vehicles. Fixed monthly rentals including road license are financed ‘off balance sheet’ causing tax benefits for most of them.
Overall Benefits of Car Leasing in Any Scheme:
Purchasing a brand new car might brace the broad market, but for a budget [individual/business], it is not always a pocket-friendly and hassle-free option. When you lease a car, you are free from a few factors.
- Giving huge down payments
- Making huge one-time investments
- Taking any bank loan.
Further, in the case of bank loans, monthly EMI pays off the principal and the interest in combination. In Car Leasing, your payment is charged for the use of the vehicle and only the interest portion. You never repay any principle. When new and old cars cost the same, one can choose according to his/her taste and necessity. Moreover, Car lease agreement includes maintenance packages which let you free from worrying about normal damages.