4 Questions to Ask Before Leasing a Vehicle

4 Questions to Ask Before Leasing a Vehicle

Leasing offers many benefits as compared to the outright purchase of the vehicle. But before you go for one there are many questions that you should ask:

1. What Is Leasing?

For instance, you went to a vehicle leasing company in Delhi and opted for lease. Now you can use the vehicle for an agreed duration on payment of rentals.

2. How is Leasing Different from Loaning?

There are many differences between buying a vehicle on loan and getting it on the lease.

 Down Payment- When you finance a vehicle on loan, you will have to make a down payment as loan is not offered on 100% price of the vehicle. But in leasing, there is no such requirement.  Funding- There is never a 100% funding on the loan while you get the same in leasing.  Maintenance and Insurance- When you go for a loan, vehicle loan costs will have to bore by you. But with leasing, the maintenance of the vehicle is the responsibility of the leasing company. Same is true for insurance as vehicle leasing company owns the vehicle so it will pay the insurance.  Ownership- When are buying a vehicle on loan; you are the owner of the vehicle. But in leasing, the leasing company is the owner.  Risk- When you buy a vehicle on loan; you will have to bear the risk of break-downs but in leasing these risks are taken care of by the lease agreement.

3. How will I benefit from Leasing?

Many benefits come along with lease agreement. Here are the important ones:

 You will get full tax exemption  Your obligation is limited to a fixed monthly lease rental  There will not be any impact on your capacity to borrow  No worries about the resale value of the car as the risk is with the leasing company  You can replace your older vehicle with a new one  You can go for the extension of the lease if you want it  When the vehicle is due for maintenance, you will get pick up and drop service.  You will get round the clock assistance from breakdowns

4. What Happens At The End Of Lease Tenure?

Once the lease tenure is over, all you have to do is to return the vehicle to the lessor.

Finally, With so many benefits leasing is better than wasting money on buying an expensive fleet. Get in touch with vehicle leasing company in Delhi to lease a vehicle now!