A car leasing is a legally binding agreement between a car owner and a “buyer” who only want to rent the car for a short period of time. Leasing a car is like renting an apartment. You are paying to use the vehicle but once the contract is over, you cannot own the vehicle. And just like an apartment lease, you can't decide halfway to skip the lease. This shall induce heavy termination cost. With multiple leasing options available online it is even possible to lease a Mercedes!

Benefits of car leasing:

Cars could be rented for few days or two or even for few hours. It typically requires at least a year of usage period. The advantage could be leasing and negotiating to a good car dealer so that you get a good price. Normally the well known car leasing companies hire dealers for direct negotiation with the client. So, even though one might be negotiating with the dealer the agreement is with the car leasing company. Another big advantage is that just like you can shop for your favourite car, you can select the car you want to lease. Like you can lease a Mercedes and drive the car of your dreams at a lower outlay and lower payments when compared to purchasing the vehicle. Car leasing is a great option for people who have a penchant for changing cars every 3-4 years. The beauty of car lease is that at the end of the lease you return the car and walk away. You are absolutely safe from the hassle of selling the car yourself. In fact, you can lease another brand new favourite car the very same day. What's more is when you buy a new car, you pay the tax on the entire value of the vehicle whereas you only pay the tax on the amount of the lease while leasing the vehicle.

Check before you sign that contract:

The person who rents the car for long term is the lessee while the institution that dictates the contract or leases out their car is the lessor. While leasing is an excellent option but signing the contract could be difficult to understand. Reading the lease contract could be as difficult as reading a tax return document. A smarter way could be to ask for a blank contract from the company and read it out in peace. Examine the contract thoroughly and ask questions to the leasing company about anything you don't understand. Also sometimes the leasing company contains errors which need to be rectified before signing it otherwise you are bound by the contract till the end of term and be at the mercy of your lessor. Like car loans, leases come in different lengths. Sometimes it is possible to extend the contract on a month- to- month basis when the contract ends. However make sure that the leasing company does not change the terms of the contract. Play safe and drive your dream!