This article describes the car lease concept and how it benefits both buyers and sellers. Mentioned in the piece is the flexi lease option that is favoured for short-term arrangements
A car lease is an agreement involving the acquisition of a car from a dealer for a temporary period at a fee. This mode is widely used by businesses that want to avoid the usually high costs associated with the acquisition and maintenance of wholly owned cars. Such leases usually run for a period of up to five years after which the vehicle returns to the dealers for re-deployment or disposal. Simply put, business car leasing is another way of acquiring a cheap car without transferring ownership or spending large amounts of money. It has the advantage of reducing the associated paperwork that companies have to maintain in relation to their vehicular assets.
The seller The benefits for both the buyer and the seller are numerous. First, the seller generates continuous income from his vehicle while retaining ownership with the possibility of redeploying it to another buyer in future for potentially more income, once the first agreement ends. The seller also has the possibility of creating a constant buyer who applies for a new vehicle or lease once the old one expires. The buyer Secondly, the buyer benefits by paying much less for the car as compared to buying the vehicle using a loan. At the same time, the requirements for a car lease on a buyer are much fewer compared to car loans or outright acquisition. The flexibility of the agreement and possibility of renewing leases also allows the buyer to get a better, newer car at every lease’s end without the obligation of selling the old vehicle, mostly at a loss.
Fleet owning companies
Car leases often work very well for fleet vehicles belonging to large companies like transporters. The cash outlay involved in buying and maintaining cars is too steep to allow profitability. One of the best payment arrangements in this sector is the flexi lease arrangement. This method involves a very flexible arrangement designed for short periods and made to the buyer’s convenience. It encompasses maintenance costs and insurance premiums without the limitations of a contract. In summary, car leasing is a subsection of the transport industry that is helping companies to control their costs in these times of economic difficulty.