Car leasing is similar to renting. A car leasing contract deals with the use of the vehicle by someone else for a specific period of time by making a partial payment. Car leasing is not preferred by most people. Moreover, accept leasing agreements only if you possess a thorough knowledge of leasing terms and conditions:

1. Types of car leasing
There are two distinct types of leases for automobiles, let’s review:

● Closed-end lease: It is also termed as a net lease or walk-away lease. Under closed-end lease agreements, you are not bound to buy the car at the end of the lease term. These kinds of contracts last up to one or two years of the time period and the lease rates are also fixed. In fact, mileage limits are set up to 15,000 miles. Additional charges are applicable in case the vehicle exceeds these limits. The owner of the vehicle will be able to sell the vehicle at depreciated value. In rare cases, he might also strike a deal with lesser and offer additional benefits at a lesser rate.

● Open-ended lease: Open-ended lease is also termed as equity lease. Under such lease agreements, it is mandatory to purchase the vehicle at the end of the lease period. These kinds of deals are usually preferred by individuals who use the vehicle extensively. Open-end lease agreements are considered to be safe compared to a closed-end lease.

2. Strategies of leasing
There are two important aspects of leasing. One of them is a bargain and the other one is a vehicle with high resale value. Let us discuss these aspects briefly:
● Bargain the price: All the costs under car lease agreements are discountable. Bargaining is an important aspect of any lease agreement. This strategy of leasing leads to a reduction in the actual cost of the car which, in turn, affects the monthly installments of the lease.

● Vehicles with high resale value: This aspect of leasing is definitely going to fetch you more benefits. Since you are paying for using the vehicle for a specified time period. A vehicle with high resale leads to lowering your depreciation cost.

● Fraudulent activities involved in leasing.

● The concept of car leasing is confusing to many and the people dealing in it might take undue advantage of this. So unless you are clear about the terms and conditions of the leasing contract, do not sign it. For example, scams relating to the actual cost of the vehicle, which is negotiable. The consumer forgets to consider this important aspect. Thus, the dealer in question grabs all the benefits.

In other cases, the dealer intentionally omits some important clauses regarding the leasing agreement. Additionally, the lessor might burden you with a hefty amount of taxes and tariffs for registrations, cancellations, etc. So go through the clauses of the car lease agreement before approving it. Most importantly, consult an expert if you are unable to understand any terminologies of the leasing contract.

Crazy about driving new cars? Do consider a car leasing contract as one of the best alternatives available in the market. Most importantly, analyze and research the pros and cons of the leasing agreement before going ahead. Some people prefer buying over leasing agreements. When you buy a car, you are the ultimate owner of the car. But in leasing, you get to own the car once the lease agreement term ends.