Car leasing is like renting the car and its accessories without becoming the owner. The car leasing company remains the owner of the vehicle. You pay a fixed amount every month to use the car and additional costs. For example, the leasing company bears the costs of repair.
A fuel card may be included in the car leasing budget
The sale of the car is done by the leasing company, you just have to stop your contract. At some car leasing companies, you can buy a car leasing at the end of your contract, so you can become a homeowner. This is called leasing with an option to purchase.
Auto leasing: advantages and disadvantages
On the other hand, there are some disadvantages to taking a car lease. You have to pay every month a little more than if you owned. You must respect the agreement of the number of kilometers. If you exceed this number, you will have to pay additional fees. When you have to return the rental vehicle, it is important that it is in good condition or you will have to pay additional fees.
|– Fixed monthly leasing costs
– You can choose a new model every 2 to 4 years
– You do not deal with the resale of the vehicle
|– You pay a premium for the car leasing service
– Additional costs when you exceed mileage
– You must keep the car in good condition
Think carefully about what you will do with your vehicle before choosing it
If you need it to work and frequent long distances, auto leasing with gas card is a good solution. If you only use it for occasional short trips, the purchase may be more appropriate.
On the Car Monitor website you can access their cost calculator Km to help you make the right choice. But in any case, whether you buy or rent your car the most important thing is to feel safe and drive safely.
Feel free to compare financial institutions to find the car loan that suits you best.