What is a Car Lease?
A car lease is a contracted agreement under which the borrower pays a fixed monthly payment or rental fee to a lender for the use of a car over a set period of time, which is similar to renting a place to live. Vehicle leasing is a commercial finance product that allows individuals and businesses to use a car without owning it, and it is also an attractive financial solution as it can allow the borrower to claim their monthly lease payment as a tax deduction.
Here at Key Strategy Solutions, we provide assistance to individuals and businesses that wish to lease a car. When it comes to getting a car lease in Sydney, our team delivers customer-focused services that suit your needs.
What’s the Benefits of Leasing a Car?
Many Australians are hesitant about leasing a vehicle. That’s mostly owing to the fact that the benefits of leasing over purchasing are unclear. There’s this notion that owning a car is more practical because you get some money back when you decide to sell it in the future.
But leasing can be packed with advantages as well. Depending on the borrower’s preferences, lifestyle, and financial situation, it offers some benefits such as lower monthly payments and more vehicle options. Let’s take a quick look at some of the benefits of getting a car lease in Sydney and other parts of Australia.
Little to No Down Payment
Typically, purchasing a car requires a down payment of up to 20%. But getting a car lease in Sydney and other big cities require little to nothing for a down payment. The borrower will usually only have to pay the first month’s payment, taxes, title, and registration fees.
Lower repair costs
Vehicle lease terms are often short. Most repairs will be covered by the manufacturer’s warranty, but the manufacturer will also cover maintenance costs in some cases. But even a long-term car lease offers lower repair costs.
Our car finance broker can help you understand their lease agreement and warranty or maintenance agreements. If you’re looking for the best car lease deals in Australia, we will help you get clear on what repairs and maintenance are covered to avoid unexpected vehicle service bills.
Lower Monthly Payments
The monthly payments are typically lower when leasing a car than when obtaining financing to own one. When financing a vehicle purchase, the entire purchase price of the vehicle over the life of the financing and the interest rates are calculated to get the monthly payment. But monthly payments for vehicle leasing are calculated differently.
The monthly payments already include the vehicle’s depreciation, rent, and taxes over the lease term. As the borrower is only financing the depreciation instead of the total purchase price under a car lease agreement, the payment will be much lower.
Vehicle Leasing Made Hassle-Free with Key Strategy Solutions
Getting a car lease need not be complicated. Here at Key Strategy Solutions, we guide our clients in finding and getting the best car lease deals. To learn more about the process of getting a car lease deal, don’t hesitate to get in touch with us.