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What does car leasing bring to private individuals?

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Recently updated on January 21, 2023 at 11:50 am

What does car leasing bring to private individuals?

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 Private Clients 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?

What does car leasing bring to private individuals?

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

  • 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.

What does car leasing bring to private individuals?

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 not!

What does car leasing bring to private individuals?

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:

New cars

  • 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.

What does car leasing bring to private individuals?

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.

What does car leasing bring to private individuals?

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 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.

Conclusion

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.

Are you planning to buy a new car and are you therefore looking for financing? Or should the modified baby and its attachments simply have the best possible insurance? Then ours Credit, financing, leasing, insurance & Co. categories exactly the right place to go to get information. And also cheap financing for Accessory parts is there. Is the new one forged wheel, the planned Airride air suspension or the one you want foiling too expensive? Then a little one might help Financing in the process of implementing the modification on the vehicle. And also the topic Leasing or the vehicle sales are not neglected here. Just click through the posts and get the answer to your questions.

What does car leasing bring to private individuals?
 

Of course, that wasn't the end of it!

tuningblog has countless posts on the topic Credit, financing, leasing, insurance & Co. in stock. Do you want to see them all? Just click HERE and look around. The following is an excerpt from the last contributions from this category:

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What does car leasing bring to private individuals?

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About Thomas Wachsmuth

Thomas Wachsmuth - He has been an integral part of tuningblog.eu since 2013. His passion for cars is so intense that he invests every available penny in them. While he dreams of a BMW E31 850CSI and a Hennessey 6x6 Ford F-150, he currently drives a rather inconspicuous BMW 540i (G31/LCI). His collection of books, magazines and brochures on the subject of car tuning has now reached such proportions that he himself has become a walking reference work for the tuning scene.  More about Thomas

a comment

  1. Tuula Lipponen

    It is a great advantage that you always get a new car when leasing, so repairs should not be an issue. I will also lease a new car from the dealership. Before that, I will seek extensive advice on this.

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