Car leasing is a contract between an individual or a company and car dealer when, instead of purchasing a car, one is leased for a defined period. In most circumstances the car is returned to the dealer at the end of the contract though sometimes the leasee might choose to purchase it at its residual value.
There are considerable benefits to be enjoyed with leasing compared to an outright purchase. Firstly the financial outlay is considerably reduced, particularly in circumstances where a loan is taken out to purchase a car. The capital and interest repayments on a car loan are substantially higher than the payments made to the dealer to cover the hire and maintenance costs.
Additionally leasing is a way in which one can exchange the vehicle every few years for a brand new one, such as with a Audi leasing deal, one could switch between models. With car purchase depreciation can vary considerably between models and the costs of depreciation are difficult to calculate accurately. There is also the need to sell the vehicle or part exchange it for a new one. This is also very unpredictable and can result in some unpleasant surprises. With leasing you always know exactly where you stand financially and you are freed from the often considerable inconvenience of car ownership.
Car Leasing Contracts take account of the anticipated number of miles that the leasee will drive. A maximum of between twelve and fifteen thousand miles would be typical. Generally these can be made higher for an increased fee and in some circumstances a surcharge is made if the mileage limits are exceeded. The length of lease also has an effect on the fee.
Although car leasing takes away much of the hassle of car ownership, leasing a car does not give the lessee a carte blanche to treat the vehicle badly. Naturally a reasonable amount of wear and tear is anticipated, normally additional charges will be made if the car has been mistreated or damaged. This is determined by a final inspection which is carried out by the dealer after the car has been returned, though this should not be of any concern to a lessee who has acted reasonably.