A perfect solution for those who don't want vehicle ownership
For one reason or another, not everyone has the need to own the car they drive, and fortunately, there is a perfect product to cater for that - car leasing.
Much like renting a house, leasing a car allows you the flexibility of having the use of a vehicle, but being able to change it with ease come the end of the contract.
Not only that, but leasing a car means you never have to worry about a vehicle’s depreciation, as you’re just handing the car back when the contract ends and you don’t need to be concerned with what it’s worth.
How leasing a car works is a fairly straightforward process, and is similar in some ways to other finance packages, though it does have its differences, too.
The principal nature of a car lease is that you are effectively paying for the use of the car, rather than to own it outright. This brings about a few advantages to people - predominantly the ability to swap cars easily every 24-36 months.
Like many packages to finance a car, you start with a deposit - or in this instance, an Initial Rental - which is calculated by the combination of so many Monthly Payments; typically three, six or nine of them make up the Initial Rental.
This is then used to make up what is called the car lease’s Profile: the amount of upfront payments + how many Monthly Payments will follow.