More and more people prefer to opt for leasing rather than buying a car. And why not you ? But, what exactly is leasing? Does this practice have any advantages? What about the takeover of an old leasing contract? Find out the answers to these questions in this article.
What is leasing and what are its advantages?
Leasing is an attractive alternative to renting a car for several years. It is a practice which is very widespread since it offers many advantages. Note that there are two types of leasing: Long Term Rental (LLD) and Rental with Purchase Option (LOA).
Since there are many models offered by car manufacturers, you are free to choose the one that meets your exact needs and budget. In any event, the duration of the contract may go from 1 to 5 years. The monthly rent is fixed in advance by the lessor (also called the financing body – he is the owner of the vehicle). Which brings us to talk about the differences between LOA and LLD. Whether you choose the first or second formula, a financial contribution you will generally be asked at the start of the contract in addition to the monthly rent. By opting for the LOA, you will be able tobuy the car in end of contract if it suits you. Otherwise, you just have to hand it over without having to worry about reselling it.
Under the LLD, the vehicle cannot be redeemed at the end of the rental.
The main advantage of leasing is therefore to be able to drive daily in a new or used vehicle. in excellent condition. In addition, the monthly rent is not likely to change, which will prevent you from being faced with unpleasant surprises. This is ideal for controlling your car budget.
What if I had to free myself from a lease?
After taking out a leasing contract, you may want to terminate your contract before the end of the engagement. In this case, resorting to the transfer of leasing is more advantageous than returning the vehicle and reimbursing penalties which can be high. The resumption of an LOA and LLD contract by a third party (private or professional) is quite possible. You just have to make sure that the lessor authorizes the transfer. To learn more about this method, you can go to a used vehicle leasing trade-in site.
Taking back a used vehicle under leasing allows the buyer to obtain an old contract already negotiated. He will no longer be required to pay a contribution, but only the rest of the rent to be paid. In addition, he will have the opportunity to buy the car back at a preferential price if it is an LOA contract. The agreement can then be beneficial for both parties.