First know- and then agree

A vehicle is a dream we all have. Often, when considering going for this dream, we find obstacles, and financial deficit is one such main thing. But how many of us really know about lease facilities over there? We have seen advertisements about banks and other non-banking financial institutions have about lease packages, but we often are afraid of going for them. What can be the reason? One main reason could be that we really wish to have one, but due to the fact that we do not know anything of the lease facilities or about the repayment options, we do not take a decision, instead, we keep dreaming forever.

This should not be the case. So, in this article we shall know more about leases, basically all you need to know as a starter. Leases will carry some should know jargons such as residual values, money factors and mileage allotment, and knowing these terms will help you to sign the dotted lines confidently when you are entering in to a lease agreement.

Basic idea of a lease

Simply put, it is a long term car rental. You use a car, and you pay the bank, who is the actual owner, the expat car rental singapore for using it. Generally the lease agreement is for a certain period of time. Call it a three years agreement, upon the agreement of both parties, the lessee and the lesser, the lessee can drive the agreed upon amount of miles during that three years’ time period. You can always increase the number of miles, but subsequently the monthly payment will be higher.

As you can understand, the more you use your car during this time, the more depreciation it will cause for the car. This reduces the value of the car. So, the lease you put has to compensate these depreciations as well. In addition to that, mind it, you have lease taxes and lease fee to pay together with this depreciation cost, so the total amount payable monthly could be higher than you think they would be.

What to do before getting a lease?

As discussed, before getting in to a lease with no idea at all can put you in hot water. All you will end up with then will be confusions over confusions because of a leased car. Instead, know and explore about leases.

Before going in to a decision, make sure you get quotation from at least three different dealers and talk about all what you need to know with them

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