How Does Leasing Work
How Does Leasing Work
A car lease is when one party acquires the use of a vehicle from another party, at an agreed upon monthly cost, for a predetermined length of time. If you are in the market for a new luxury vehicle, but you don’t want to commit to purchasing outright, then leasing could be an excellent option for you. So how does leasing work, you might ask? In this article by Pfaff Leasing, we will discuss what goes into the leasing process at our Calgary facility, so keep reading to find out more!
Leasing a vehicle is much like renting, as you are essentially paying for the use of the car without actually purchasing it outright, in monthly installments. Choosing to lease affords you two huge benefits- you can drive a higher quality vehicle for a lot less than you otherwise would be able to afford if purchasing outright, and the fact that your chosen car will remain under warranty for the duration of the lease, making routine maintenance your primary responsibility.
Depreciation is the difference between the overall value of a vehicle when it is new versus its residual value, essentially, it is the decrease in the value of the car during its leased period. It is this cost that will make up a large portion of the lease’s monthly rates.
At the end of the agreed-upon lease term, you’ll have multiple options at your disposal. First, you can drop the vehicle off at Pfaff Leasing, and be on your merry way. Second, you can acquire a brand new model and enter into a new leasing agreement, as many are want to do, affording people the flexibility to drive what they want, when they want. And three, you can purchase the vehicle you have just finished leasing, with a locked-in residual value decided at the start of the term, upping your monthly fees, or paying the difference once the lease is up, resulting in full ownership of the car in question.
So how does leasing work? If you would like to receive a more in-depth explanation of the entire process, we would be happy to help at Pfaff Leasing. Calgary residents can give us a call, or come and visit our facility in person to find out more, as we are locally situated at 5539 6 Street S.E.
Please click here to find our contact information online, fill out our contact form for further assistance, and learn more about the leasing process!