January 13, 2011
Car Leasing Versus Purchasing: It Matters To Know The Difference
The right to know should be a part of every consumer’s mantra. Knowledge is power and it is truly beneficial in practicing smart buying decisions. Hence, people who are planning to lease a car should scout for the right information on leasing a car before signing the contract.
Auto renting is beneficial in several ways, particularly for short-term driving needs. However, it is not for everybody. It thus matters to know whether or not car leasing is suitable for you.
Basically, leasing means renting the car in a short period of time ? usually 2-4 years. Since the vehicle is rented lessees are only paying a portion of the car’s value. Lessees are also expected to return the car, as much as possible, in its original condition. Some though choose to purchase the car once the leasing period is over.
Car Leasing Singapore: The Benefits Of Auto Renting
Knowing the pros and cons of car leasing is a necessary step in determining if auto leasing is for you. The strong points of car leasing include the following: no or little down payment, relatively less expensive monthly payment and interest rates can be tax deductible, particularly if the car will be used for business purposes.
Another big advantage of leasing a car is that the interest rate is tax deductible. This is leased cars used in business appointments. Moreover, the chance of driving a luxury car or, if not, a brand new car is an additional bonus for customers.
Car Leasing Singapore: The Disadvantages Of Car Rentals
Moving on to its downside, the greatest strength of car leasing also seems to be its weakest aspect. However, this can be avoided by properly observing driving and parking measures. But just the same, lessees have to ask the lessor to define the excessive tear and wear charges in written form. Lessors usually charge excessive cost on tear and wear that a scratch should not be considered minor car damage.
In addition, car leasing companies do not shoulder the payment for the insurance. Lessees will also have to pay for annual mileage, maintenance as well as parking and traffic tickets.
To sum it up, car leasing is beneficial if the lessee intends to use the car for less than two years. But if the customer will have to keep the car for more than four years, it is better to purchase a new one. This is because when the period of financing a new car ended the customer has something valuable to keep.
Car Leasing Singapore – Learn how to meet your transportation needs without financing a new car. You can acquire more knowledge about car leasing by visiting this website.
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