- 29 May 2021
- Reading time
- 3 minutes
When you need to run some errands or travel alone or with the family, you might want to avoid the hardships that come with public transport. You don’t have to own a car to drive one or enjoy the perks that come with self-drive. If you are not ready to but one, a car lease is a viable option for you. Though leasing comes with its fair share of downsides, it’s an option worth our attention and yours too. Read on and get all your answers.
Defining car lease: How Does a Car Lease work?
Leasing a car means that you can drive a brand new vehicle without owning one. Unlike when buying a car, where in most cases you may require to get a car loan and hefty upfront payment, you only need to pay the agreed monthly fee for a fixed period. In simple terms, you pay to use the car and not to own it. When the fixed period lapses, you have to either return the vehicle to the company or buy it.
You pay a down payment to take care of the taxes, depreciation of the car, interests, and rental charges that accumulate over time. To lease a car is like getting a long-term car rental. Different companies have different deals. You can read more before you ought to know about companies that offer car lease services before getting any deals.
Car Lease options
Now that you know what leasing a car means and requires, let's delve into the options available in the market. Choose what suits you best.
1. Car Lease takeover
As the phrase might suggest, Car lease takeover means taking someone else's lease deal and payments. It's one of the best options as you won't have to pay high upfront charges. While it may reduce the lease cost, you should be careful not to take over the vehicle's problems and conditions like mileage overages. Inspecting the lease terms is the best way to avoid these surprises that may be costly than paying upfront charges for a new vehicle. If the terms are good, then you should shy away from taking over the lease.
2. Used car Lease
If you hope to own the car after leasing it, getting a used car is usually the most common agreement. Again, it might be in the form of a takeover lease, and the vehicle might be slightly used. Be sure to inspect it thoroughly before getting any deals.
3. Standard rental car leases
You get a brand new vehicle as long as you have an approved credit score. All you need is to make a down payment and the agreed monthly lease payments. Keep the car until the lease period lapses, when you can opt to get a newer sleek drive or extend the lease for the current vehicle.
4. Leasing the car to own it eventually
The option is similar to the standard lease except for the fact that your money gains value in the form of equity. Also, you usually don't have the option of getting a brand new vehicle.
Benefits of leasing cars
1. Financing monthly car lease payments is cheaper than loan payments.
2. The down payment when leasing a car is lower than buying a vehicle with a loan.
3. It's easy to access a new car you can't afford to buy. With a loan, you can manage to buy it eventually.
4. You enjoy the manufacturer’s warranty.
5. You can get the latest sleek car models with ease rather than sell your car to buy the latest.
How easy is it to get a car lease in Toronto?
Like finding an outstanding car lease in Vancouver, you should find one in Toronto. Both are principal cities served by huge and popular car dealerships like Honda, where you can get any car for lease. Both brand new and used vehicles are available for lease and lease takeovers.