Leases typically include the following:
- Mileage limitations
- Insurance coverage
- No tax
If you are still confused, some of the other points of vehicle leasing are the right way for finding the best deal for you.
Offer you Advantage of Warranties
For instance, when you get a car of the lease, you will get the advantage of warranties offered by most of the dealers in India. You’re going to make monthly payments to own the car on lease. Also, for any damage to the vehicle during the term of the lease will most likely to be covered by the dealers and in some cases, you have to pay from your pocket depending on your lease terms & guidelines.
Know About Residual Value
Let’s talk about the residual value that is the wholesale worth of a car at the end of its lease term. It is sometimes called “resale value” of the leased vehicle. The higher the residual value of a car at the end of the term the more the car is worth and lesser the lease payments. As it’s not easy to predict the future residual value, that’s why most of the dealers in India look for historical resale value data before offering specific car models on the lease.
Refundable Deposit Fee
A lease deal doesn’t imply any type of sales tax on the real cost of the vehicle. Only the lease rentals are subject to tax, and in some cases, tax amount is beard by the lease dealers. Similarly, you’ll likely have to pay a refundable deposit fee to the lease dealership that they will pay you at the end of lease term.
Hope, these points makes sense and helps you understand the inherent benefits of vehicle leasing. You can opt to buy a new vehicle on lease and return it after two or three years of the term, but before doing this try to understand about it.