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Residual value plays a role in determining the size of monthly payments—if a new car is valued at $35,000 and has a residual value of $20,000 after three years, the cost to lease is $15,000 plus ...
You can choose to buy the car at the end of the lease, which means the condition of the car won't matter. What Is the Cost to Lease a Car? The average car lease costs $487 per month. In comparison ...
What is car leasing? Find out everything you need to know about leasing a car, including the pros and cons and how to get the best lease rate.
Vehicle leasing is the leasing (or the use) of a motor vehicle for a fixed period of time at an agreed amount of money for the lease. It is commonly offered by dealers as an alternative to vehicle purchase but is widely used by businesses as a method of acquiring (or having the use of) vehicles for business, without the usually needed cash outlay.
Usually, car leases allow the lessee to drive the car for a certain number of miles for a certain number of years. The lessee pays a fixed monthly payment for the privilege of driving the vehicle, and when the lease ends, the lessee returns the vehicle to the lessor.
Unlike Personal Contract Hire, the leasing company can reclaim the VAT, and this means that the monthly payment would be less because: the interest charges are applied to the net-of-VAT cost price i.e. a car would be without the VAT, giving substantial savings on interest charges
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