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Business or Private Car Leasing: Does it Make Sense?
Private, business or company car leasing allows you to drive a car of your choice without
actually having to pay a huge sum of money and purchase it. Leasing out a car requires you to
pay a small down payment which is followed by payments on a monthly basis till the lease
duration ends. Once this lease expires, you are supposed to return the car.
Who can lease a car?
Before you go out and lease a car, you must be sure that business or private car leasing makes
sense in your case. One of the disadvantages of leasing out a car is that if you do so for a long
period of time, say ten years, the cost of leasing cars for this period is bound the exceed the
cost price of a new car. On the other hand, leasing out a car does make sense in the following
conditions:
- You don’t have a car of your own and don’t have the cash to purchase a new one but
are in urgent need of a car
- You want to drive a vehicle that is out of your price range
- You are not likely to exceed the mileage limit stated in the contract
- You are capable of taking good care of the interiors and exteriors of the car and you are
not likely to let the car sustain nicks, spills or other cosmetic damages
- You expect to lease out another car once the contract on the current car expires
If you fulfill most of these requirements, you are qualified for company or private car leasing. It
is important to understand that leasing out a car is very much like renting a house and that it
requires great attention to detail on your part on several factors such as pricing, maintenance
and so on.
Things to consider when leasing a car
As mentioned earlier, you must realize that leasing a car only makes sense if you don’t have the
cash to buy a new car or are looking for a particular model that isn’t within your budget. The
reason for this is that over a period of time, you would have paid more towards private or
company car leasing that what a brand new car would cost at present and this is not the wisest
form of long term planning.
Again, when you lease out a car, you should also be careful to maintain it like your own. Any
damage done to the car’s appearance or performance will land you in a soup. You will have to
pay penalties for these damages. Additionally, if you cross the mileage limit for the car, you will
also have to pay an extra amount of money on every mile. It is therefore important to check for
all these peripheral costs when going for business or private car leasing. Overshooting the limit
on miles or scratching the car is not something that is done intentionally but these things do
happen. It is therefore better for you to be well aware of the price you will pay for these
unaccounted situations.