Car Rentals Were Popular With Numerous Business Owners

by Adam Ellis

Car leases are typically used by large companies who send out a sales force and other representatives. These salespeople have to drive an impressive, new car to put themselves and their employer in a good light. Potential clients will not be as willing to make a purchase or sign a contract with a sales representative who drives a shabby looking automobile.

There are usually lower payments for a car lease than a car purchase. There are expenses for upkeep such as oil changes and tune ups. Some of the contracts include these types of maintenance. When they do, they cost more. But all the driver has to contribute is insurance and gasoline.

Leasing a car has good points and not so good points for both parties. When you purchase a new car, it depreciates in value as soon as you drive it off the lot of the dealership you buy it from. When leasing, that is of no concern to the person who leases. At the conclusion of the contract, the dealer takes it back and usually sells it for a profit.

The dealership has the advantage of collecting all the monthly payments and still owning the vehicle at the conclusion of the lease. He or she can sell it and still make a profit. In addition, the dealer can lease another newer model car to you and begin collecting monthly payments once again.

When someone terminates a contract ahead of time, there is a financial penalty to pay for that privilege. There is a mileage limitation per year. It is usually 10,000 miles a year. It can be higher if both parties agree to it.

There is also a contract hire situation, which includes all repairs and routine maintenance. The cost is all inclusive. Of course, there is a higher monthly payment for such a contract. Plus, the driver will still be responsible for keeping the insurance premiums paid and putting gas in the tank to run the automobile.

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