Car leasing is arguably the most convenient and manageable way for those dreaming of a cool set of wheels to start cruising the highways in those fancy cars. Due to the higher risk of rapid car depreciation, people are convinced that leasing a car will minimise the drawbacks inherent in purchasing a car. Business and private sectors are becoming more and more attracted to the features this scheme has. The flexibility of car leasing makes it rather appealing to both groups.

Car leasing has two forms, the business and personal-type of leasing plan. Customers of the business type are mainly composed of firms seeking multi-functional cars that are needed in their business operations and other transactions. Personal car leasing, meanwhile, is exclusively offered to private individuals who want to lease conventional cars that can match their unique lifestyle. In short, business-type leasing is cheaper than personal-type leasing.

There are certain requirements that a prospective leasing client must meet in order to go ahead with this type of venture. Firstly, an initial payment is needed before proceeding to the next phase. Secondly, during the term, the lessee must conform to the guidelines of the scheme. Guidelines include monthly payments, mileage restrictions, and residual value recovery. Monthly payments are proportioned based on the client’s chosen scheme, whether it is a 24- or 36-month leasing period. Mileage restrictions limit the client to running the car within the agreed set mileage. This is imposed to prevent sudden car depreciation. Lastly, residual value will be given if the client turns down the purchase option. The residual value figure is obtained by deducting the car’s post-use value from its pre-use one.

As car leasing continues to earn popularity, car owners are increasingly finding that this method eases certain problems inherent in driving a car.