Cars Trade In
About Auto Leasing Auto leasing is different than buying an auto. Leasing became popular because it offers individuals a means to drive the vehicles they need – often better vehicles than they might purchase – for less money compared to purchase. Leasing is just a way of investing in the use of an auto, truck, SUV, or van over a given time period. After the consumer and seller agree on a cost, and the lease contract was signed, the dealer then sells the vehicle to the leasing business at the agreed upon cost. The leasing company then rents the vehicle to the consumer, based on that cost.
The vehicle dealer acts as a realtor for the leasing business. The dealer works out the conditions of the leasing arrangement on behalf of the leasing company. Leasing companies utilised by dealers are often subsidiaries of the vehicle maker, like Mercedes Benz Financial Services for bulk of the Mercedes leases, Ford Motor Credit used To get bulk of the Ford leases, and General Motors Acceptance Corporation To get bulk of the GM vehicles, BMW Financial for bulk of the BMW leases, Lexus Financial Services To get bulk of the Lexus leases, Toyota Financial Services To get bulk of the Toyota leases, all of these firms have outstanding and friendly lease transport coverages.
Nevertheless, bear in mind that dealers may also provide auto leases from banks along with other lending institutions with which they’ve developed mutually beneficial business conditions. Auto dealers are in the business of supplying cars, leasing businesses, banks, and credit unions offer auto leases. The consumer has the option to shop for his\/her own leasing company, bank, or credit union to find better lease terms compared to the leasing companies offered by the dealer. The tradeoff is the fact the fact the fact that dealers make it very convenient to arrange for both: the car and the rent all in just one meeting, and the dealer specified leasing company may frequently offer special lease conditions to assist the dealer move cars. Signing a leasing contract implies that the customer agrees to make regular monthly installments, keep suitable insurance, pay any vehicle taxes and license fees, and take proper care of the car. The customer agrees to maintain the vehicle for a given number of months – standard rents are for 18, 24, 36, or 48 months – and is likely to hold onto the car throughout the end of the lease agreement. Towards the end of the rent the customer is likely to return the car to the leasing company with a maximum of normal wear and tear.