Car leasing what does it mean

Car leasing what does it meanThe purchasing of a car is a great expense for many people and the majority of people choose to save up for a length of time before buying. Most people will buy a car and then keep it for several years and for this reason it can be regarded as a very important purchase. One of the biggest issues around buying a new or used car for many people is the large financial outlay that is required. For this reason, financing of cars has become very popular and now many people choose to do this. Whilst the traditional model of financing cars has always been popular, one of the popular routes is through using car leasing. The reason why car leasing has become so popular is due the fact that it can cater for a range of different people. In essence car leasing is very similar to buying a car through finance. The major difference is that the buyer can choose to hand the car back at the end of a fixed term. Car leases will usually be arranged for between twelve and thirty six months, during this time monthly payments will be made and then at the end the car will be handed back. Some leasing companies do allow the car to be bought at the end of the agreement if the car user wishes.Car leasing has become particularly popular with businesses and people who are self employed. Through using the car leasing system many businesses are able to get tax efficiencies. Car leasing has become popular with individuals as it means that a large financial outlay is not required in order to get a car. In the majority of cases the cars that are offered through car leasing are brand new.For people who wish to buy a car at the end of a car leasing agreement it is likely that there will be a lump sum payment. This lump sum will officially mean that the car belongs to the car user. Before committing to buy a car at the end of a car leasing agreement, it is worthwile considering whether getting a new car leasing agreement will be better value. There are car leasing agreements available for people who do not have a deposit and also for people with poor credit history.