car news

What exactly is leasing?

July 26, 2023

Are you familiar with car leasing? It has become an increasingly popular way to drive a car without having to put down a hefty sum of money right away. Whether you plan to lease assets or are thinking about it, entering into an agreement with a company offers several benefits. A company like finances the means of transportation and makes it available to you through leasing so that you can use it or even own it. Each month you pay an amount to the company during the agreed period. Depending on the form chosen, you can become the owner of the property immediately, or you make this choice at the end of the period. The big advantage of leasing is that you pay the value of the property in installments, so you don’t have to make a large initial investment. This allows your company to keep working capital free and use it more effectively.

How did car leasing come about?

Car leasing emerged in the early 20th century, primarily focused on business use to provide employees with transportation without high acquisition costs. But over time, the landscape of car leasing changed. Individuals began to show interest because of the financial benefits of not having to buy a car outright. Flexible options emerged, such as short-term contracts and monthly cancellable agreements, allowing people to adapt their car experience to changing needs. Moreover, the rise of electric cars caused a major change. More and more people were choosing electric cars because of their lower fuel costs and environmentally friendly aspects. Car companies cleverly capitalized on this trend by offering a wide range of electric models. Thus, the evolution of car leasing has led to a more inclusive and sustainable approach to paying off cars that benefits both individuals and businesses.

What is private lease?

One of the most notable trends in car leasing is the rise of private leasing. This is an attractive option for people who do not want to buy a car but want to enjoy the benefits of a new car. Here you pay a fixed amount per month, which includes the cost of maintenance, insurance and depreciation. The only thing left for you to arrange is the fuel.

This has become especially popular because of its convenience and transparency. You know exactly where you stand and have no surprises afterwards. Moreover, you don’t have to worry about the residual value of the car because you simply return it to the leasing company at the end of the contract.

Another advantage is that you don’t have to make a big investment. You pay a fixed monthly fee, which is a viable and attractive option for many people. Even if you don’t have the savings to buy a car, you can still enjoy a new car thanks to private lease.