Are you planning to buy a car? Is the EMI pinching your pocket? Are you looking for any alternative solution with lesser EMI? Then, leasing a car is the solution to all your EMI worries. If you buy a car you got to finance for the whole vehicle cost. However, if you lease out a car you will pay only the depreciation cost. This will definitely decreases your EMI amount and also the principal amount of loan. If you don’t have any clue on how to lease out a car then just go through this article this will help you in understanding the major differences between buying and leasing a car and which option suits you best under which circumstances.
If you like to change your car in every few years then it is better to opt for leasing a car rather than buying it. If you buy a car instead of leasing you got to face a lot of hardships when you are going to sell it after few years. In such cases it is always advisable to go for leasing over buying. Apart from non-monetary issues there are certain monetary benefits of leasing that are making it a more favorable option over buying. Let’s look at the financial front of leasing vs. buying. Leasing a car would less affect your monthly cash flows. Also leasing needs less down payment and initial fees.
If you consider financial front then leasing is a best option for you as you will have more surplus cash flows each month which means a chance for alternative investments. However, leasing a car is not an option for you if you drive a lot, if you’re prone to getting scratches on the car and if you buy a car for business. If you are clear on your priorities and if you want to lease a car then let’s looks at how to lease out a car? Whom to contact for a lease deed?
Contact a lease funding service firm in your locality and tell them your requirements, car model and find out whether leasing of the vehicle of your choice is available or not. If you are satisfied with the information by the firm then execute a lease contract. Once the agreement executed you will receive your car and you can start using the car while paying your EMI’s as per the deed. Once you reach out the end of the leasing deed you can either sell the vehicle back to the lesser or you can buy out the car by paying off the amount agreed upon.