Leasing a car has long been considered Tax savings for business customers. The monthly leasing rates could be deducted directly from the tax. This is still the case now! But now they have Individual Data Protection discovered car leasing for himself. What are the advantages of the concept for private customers and what different leasing models are there?
How does leasing work?
Car leasing is comparable to renting an apartment. The customer rents the car instead of buying it. To do this, the lessee, i.e. the customer, has to contact the lessor - in most cases the car dealership monthly amount pay for the use of the vehicle. The terms range between two and four years and are agreed in a leasing contract. The leasing contract also regulates whether a deposit must be done. This is mostly 10% of the total amount. The down payment reduces the amount of the monthly installments. After the end of the contract, the lessee returns the vehicle to the contractual partner. Leasing contracts are concluded directly at the car dealership or online. The following models come into consideration for leasing:
- Mileage leasing means that the lessee has a contractual agreed number of kilometers has available, which he is allowed to drive by car. The monthly installments are based on this not only according to the value of the vehicle, but also according to the kilometers that can be driven. If the lessee exceeds the agreed number of kilometers, he has to pay extra. If he does not use this, he gets money back. In both cases, the tolerance is approx. 2.500 kilometers. The advantage of the model lies in the calculability of the costs. There are threats after the lease expires almost no nasty surprises.
Residual value leasing
- In this model, both parties agree on a specific one residual value, which the car is expected to have when it is returned. The leasing costs are based on this. If the residual value after the useful life is lower, the lessee must additional payment pay. A higher residual value, on the other hand, pays off for the lessee. An appraiser will be consulted to determine the residual value. Calculating the costs is more difficult with residual value leasing, but the lessee does not have to constantly check the mileage. As a rule, however, the vehicle achieves the residual value will not!
Benefits also for private individuals
Car leasing is a good business model for companies to save on taxes because they can claim the leasing costs for tax purposes. But private customers can also benefit from leasing. Here are the main benefits:
- The lessee always gets the latest model with advanced technology. Many motorists lack the financial means for a direct or installment purchase. Car leasing is in many cases significantly cheaper and there is the option of leasing a new car after the handover. The lessee always drives the current model.
No equity required
- Car leasing is an attractive way of being mobile, especially for young drivers who do not yet have enough equity, for example because they are still at the beginning of their professional career. You finance the monthly installments from your own earnings. There are enough leasing offers without deposit, which is a real advantage for customers without equity.
Flexible contract terms
- Lessees can be flexible with the contract terms and arrange them with the lessor according to their wishes. Terms of between two and four years are common, but there are also offers that are between one and five years. The longer the useful life, the better günstiger are usually the leasing installments.
Fixed monthly rates
- The fixed rates have the advantage that they make car leasing calculable. In addition, the amount of the leasing installments is mostly lower than with hire purchase. The reason is that the wagon will not becomes the property of the lessee, but is returned to the dealer after the leasing contract has expired.
No repair costs
- The older a car gets, the more so Repair costs fall to. With leasing, the customer always receives a new vehicle, so repairs should not be an issue. If repairs have to be made, these are usually covered by the manufacturer's warranty. In addition, a passage on the assumption of costs for repairs and maintenance work by the lessor is the subject of many leasing contracts.
Car leasing is not only a lucrative business model for business customers, but can also prove to be cost-saving for private individuals. Young drivers in particular benefit from the low leasing rates and the hardly any repair costs.
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