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4 Factors Which Can Make or Break a Leasing Agreement!

Most corporate car leasing companies have their leasing terms. So, the key factors and terms must be thoroughly understood to avoid any shocks later on. <br>https://www.smasindia.com/t

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4 Factors Which Can Make or Break a Leasing Agreement!

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  1. More people would prefer leasing a car due to pandemic. The reason is simple, lower incomes and inability to pay the loan instalments and risk of default. Before going for leasing, many things have to be considered. About Leasing In this service, you are not buying the car or securing a loan to buy it. Instead, you will pay an initial deposit and monthly payments to cover the depreciation. At the end of the lease term, you will return the car and start with a new contract. The main advantage lies in the affordability. Leasing is a way of enhancing the buying power to get a new and better model than you can afford if buying outright. However, several key factors can make or break the lease deal. So, check out for these while evaluating the lease agreement of corporate car leasing companies.

  2. 1-Option to Purchase If you want to own the leased vehicles eventually, you should include that option in the leasing agreement. In this form of leasing, you have the option to make a final payment to buy the fleet or the car. Else, you can opt for a new model or return the car and end the lease. Most leasing companies offer this agreement along with the standard car leasing agreement. 2-Annual Mileage The monthly lease payments on a leasing agreement are based on the likely depreciation of the car. Hence, you are asked to provide an estimate of the annual mileage at the start. It is crucial to consider how much will you cover. If you overestimate, it would lead to paying more months. You will end up paying the extra mileage fee in case of underestimation. It’s best to be accurate as possible although you will have the option to extend it. You can save money by getting it right at the beginning. 3-Wear and Tear Most leasing agreements allow for some wear and tear. It means you won’t be charged if the car is not returned in the original condition. It’s best to get more clarity on this. 4-Initial Payment It is required to start the deal and to choose the size of the initial payment is entirely dependent on

  3. the lessee. If you choose small initial payments, the monthly lease payments will increase. Finally, Most corporate car leasing companies have their leasing terms. So, the key factors and terms must be thoroughly understood to avoid any shocks later on.

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