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Posts Tagged ‘Car Leasing’

Car Leasing Without Advance Payment

Tuesday, May 17th, 2011

The other great disadvantage of Car Leasing from the car leasing scheme is that if you are unable to pay the installment after the month of the car then the bank in the UK will give you another time limit in which you are going to pay that installment. For example if you are a businessman and you want to purchase a costly car by making cash payment then you have to take the money out of the capital of your business for this purpose.

Withdrawing the cash out of the business capital may be dangerous for the business as there may be the risk of short of cash to meet the expenses of the business and to meet the liabilities of the business.

In the present time the mark up rates applicable on the business loans are on its peak in United Kingdome so it will be very costly loan that can affect the profit of the business and may be you have to suffer from the loss in the business.

Important Aspects to Consider In a Car Lease

Sunday, May 15th, 2011

Length of Contract: Generally lease agreements are for 6, 12, 18, 24, 36, or 48 months.

Negotiate: Car leasing companies usually buy vehicles in large numbers and hence can pass on the benefits to customers.

Residual Value of the Car: Select a car with a good residual value at the end of the contract. This will bring down the monthly instalment.

Early Lease Termination Penalties: Many lease agreements have stringent penalty clauses for early termination. Analyse these clauses carefully.

Excess Mileage Charges: Estimate your car usage accurately before entering into a contract because excess mileage charges may apply.

Wear and Tear: Read wear and tear clauses carefully. Most lease contracts specify that charges for excess wear and tear will have to be borne by the customer at the time of returning the car.

Modification Clauses: Usually customers are not allowed to make any modifications to the car. If the customer makes any changes, he will have to bear all expenses to bring the car back to its original condition, when returning it to the lease company.

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