Tuesday 27 September 2011

Why Should You Choose The Vehicle Leases Contract

By Paul Trump


The recent economical pressures have hit many people who would usually buy whatever they wanted, but now they think twice before doing so. When they are in need of a new car, these days the vehicle leases option have become a popular choice for many. It is an easy and cost effective way of driving your own new car.

A lease contract is now an option for people who have low credit ratings too and this gives them a chance to drive a new vehicle as well. It helps them further that no deposit is needed when you lease a new car. This is different from a loan from any financial institution where a deposit will be needed when you sign the contract.

The leasing agreement saves you money in taxes too, because you need only pay the tax on the new automobile on a monthly basis. The standard loan agreements do not allow for this and you need to pay the full tax amount on the purchase date.

The main saving with any lease agreement is on the monthly installments. You pay much less, because with the leasing of a new car, they only charge you for part of the car's value. You do not pay the full value at all, but then the car does not belong to you after the contract period.

At the end of the contract period, you have to give back the vehicle, but they do give you the option of buying it. To become the owner means that you will have to pay the remainder of the car's outstanding value. Otherwise, you may apply for a new lease contract.

When you want to save money and you really want to drive a brand new car as well, then you should select car leasing. You might not be the owner of the car afterwards, but you could then apply for a second lease and drive another new automobile.




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