Busting the Most Common Misconceptions about Car Leasing

People have many misconceptions when it comes to the prospect of leasing a car. They think that entering into a car leasing agreement would be similar to car renting; or that it would wash your money down the drain, etc. To bust these misconceptions and know what the real deal behind car leasing is, we have put together some clarifications about it. People have many misconceptions when it comes to the prospect of leasing a car. They think that entering into a car leasing agreement would be similar to car renting; or that it would wash your money down the drain, etc. To bust these misconceptions and know what the real deal behind car leasing is, we have put together some clarifications about it.

• Car leasing is the same as car renting.
Unlike what most people think, car leasing is not the same as car renting. The truth is that when you rent a car, you are only paying for the privileges to drive a rental for a few hours, a couple of days and the longest would probably be a couple of weeks. Car leasing, on the other hand, has become an alternative form of car ownership.

When you lease a car, you are paying for the right to drive a car as your own for a few months up to a couple of years or even five years. At the end of the lease agreement, you have the option to renew the lease, buy the car or simply return the car and not renew the lease at all.

• Car leasing are mere scams made up by unscrupulous car dealers.
This myth probably still exists because most people do not understand the real deal behind car leasing. As mentioned earlier, it is a legal and proper agreement between a leasing company and a customer. It is not some cooked-up deal by car dealers so disabuse you of the notion.

• Leasing agreements are only suitable for business owners.
Considering the lower deposit, lower monthly fees and generally lower costs involved in leasing a car, why does this myth still exist? What you need to remember is that car leasing agreements are suitable for those who want to drive new cars every couple of years, anyway. Instead of buying a car, leasing would be a more practical option because of the hassle-free trade-in options that you can go for.

• Every lease end agreement involves astronomical charges.
Although there are some car leasing companies who do charge large fees to their clients at the end of a lease agreement, there are some basis to it. If you pre-terminate the leasing agreement, if you go over the mileage stipulated in the contract or if you return the car in an already beat-up condition, then you may have to pay for such fees.

To counteract having to pay such fees, make sure to read the Terms and Conditions before signing a contract. You can take your pick from car leasing options which last anything from six months, one year, two years or five years. The period depends on what your personal driving needs are.

As long as you know what kind of agreement you are getting into, it definitely does pay to consider leasing cars over buying them. Whether you are dreaming of driving a sleek sports car or if you would like to have one for the entire family, it pays to know that there is a cheaper option in the form of car leasing.


By: Vesiko Di

It is good to know in different languages a bit of this kind of terminology. So for example in Danish you can say bilforhandler or bilforhandlere for car dealer or car dealers.

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Source: http://www.articledirectoryusa.com/article/category/vehicles/car-buying/busting-the-most-common-misconceptions-about-car-leasing/

Article Tags: car loan , company cars , VW leasing , lease car privately , private car leasing , private leasing , VW , Volkswagen

Submitted On Apr 25, 2012. Viewed 386 times.

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