A car lease is essentially a long-term agreement of 12 months or more, offering exclusive use of a vehicle for a set period and at a fixed monthly price. Leasing has become very popular and is a cost-effective alternative to buying either new or pre-owned vehicles, giving drivers greater flexibility. Both individuals and corporate customers looking for vehicles are now considering long-term car lease as an attractive and financially sound option to buying a new car, reducing their financial exposure to bank loans and dealer finances. Leasing also allows corporate customers, in particular, to future-proof their company’s financial assets from the impact of vehicle depreciation.
When someone buys a car, there are lots of costs associated with the vehicle which are not known upfront however it does create an impact during the period of ownership e.g. vehicle repair expenses, accident repair cost, cost of downtime of the vehicle (when the vehicle is off-road) risk on resale, etc. As against all this in a Lease one pays a fixed monthly rental during the lease term and enjoys various benefits of the fleet management services and saves a lot of the additional cost that one might incur while owning.