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Everything You Need to Know and More About Car Leasing If you are in desperate need of using a car but your bank account and pocket just say no, then the next best thing that you can consider is getting car leasing options. In a nutshell, car leasing is the process whereby you contact a leasing company for you to rent a car. Rather than giving a huge sum of money for the down payment of the car that you are buying, car leasing only requires you to pay small amounts of installments in order for you to drive a leased car. If you are thinking of engaging in car leasing, then here are some basic facts and tips that you have to know first. What car leasing options will you be choosing from? There are two primary car leasing options that you can choose from: open-end lease and closed-end lease. For the closed-end car leasing option, you can simply return the car that you have leased at the end of you term and that is it. However, it is a must that you make sure to keep up with the terms of use imposed by the leasing company if you do not want to pay additional charges for penalties.
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For example, if they have stated in their terms that you will only meet a certain mileage and you have exceeded, then you will be paying for the excess mile. Moreover, when you return your car, the leasing company will make sure to evaluate it and if they find out that is has been subject to wear and tear beyond their level of acceptance based on your contract, then you may have to pay them.
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This option also allows you to be buying the car based on its residual value. It is crucial that the buyout price will be made mention in the contract that you have signed when you made a leasing deal. Now, what should you expect with the open-end car lease? The open end car lease you must know is particularly offered for businesses. When it comes to this kind of lease, the lessee will be paying for the difference in the pre-determined value of the car and its market value after the leasing term has ended. So, what benefits are there with car leasing? First and foremost, car leasing allows you to pay only the slightest amount in terms of its upfront cost. Most likely, the leasing company that you have chosen will let you pay the first month of your lease payment as well as some security deposit. This is very much different when you buy a car because you are required to pay a huge amount of money for the price of your car and you must also give down payment to the loan lender of your car.