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 What
is Car Leasing?
Leasing
is nothing more than a method of paying for the use of a car over a specified
period of time. Sounds like renting, but don't get the two confused.
When you lease, you work out a purchase price with the dealer just as you
would if you were buying. But it's the auto leasing company that actually
buys the car-at the price you and dealer decide on. The dealer simply acts
as an agent for the leasing company, which is usually a subsidiary of the
car manufacturer, and works out the terms of the leasing agreement with you.
Once the contract is signed, your relationship is with the leasing company,
not the dealer.
Signing a leasing contract means that you agree to make a monthly lease payment,
keep insurance, pay any taxes or fees, and take care of the vehicle.
At the end of the lease you're expected to return your vehicle to the leasing
company with no more than normal wear and tear. You may also have to pay for
any extra mileage you drive over and above an agreed-to limit.
You may have an option to purchase your vehicle at lease-end for a specified
price, if you choose. Otherwise, you simply return the vehicle to the leasing
company and walk away. more
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