The Various Forms Of Vehicle Leasing Options To Pick From

By Alfonso Hinton

Making a vehicle leasing choice is hugely important. Before you sign the car lease, make sure you know all your car leasing options. Being proud of your decision is important, so make informed choices.

Even if you already know you want to lease a car, you need to know your options. Rising auto and financing costs have made leasing seem like a budget friendly option of car ownership. When you lease you will not own your car; you essentially rent it. Vehicle leasing is a great option for those who like to drive newer car models without spending a fortune.

It seems most individual consumers choose closed-end leasing. With a closed ended lease, customers can walk away at the end of the terms with no obligations. When the lease expires, individuals have no extra costs, provided they have not violated the terms. Ways that you can violate terms include racking up extra mileage and causing damage to the car. Get a good insurance plan when choosing this option, and make certain to keep up on maintenance.

Commercial, rather than consumer clients usually choose an open-end lease. Signing this type of lease brings greater financial risks than a close-end option. This plan offers more flexible mileage to commercial industries, as they typically require more mileage. Open-end leasers must pay the difference between lease value and the actual market value at the end of the contract. If the market value of your car changes, you will be losing that difference at the end of your contract. Business leases have lower monthly payments but more risks are involved. If you chose a business lease, you will notice there are many similarities to the above to leasing options. Business financial advisors and tax accountants can help business decide if a business lease is right for their company. They can help explain the many risks and benefits involved in the process. Fleet managers are next on the list to meet after you've sought the counsel of your advisors. Select the brand of car you would like to use and then contact their fleet manager.

Close-end leases are almost always the smartest car leasing options for consumers. The only risks involved are if you drive over your mileage or damage the car. Consumers can control their mileage and a smart insurance plan will minimize risks.

Business and industry will almost never be advised to purchase a car rather than lease, but an individual consumer who drives a lot of miles or tends to damage their vehicles might do better to purchase rather than lease. Being honest with yourself about your driving needs and habits is the first step to getting the best possible value for your money.

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