The lessee pays the lessor a monthly fee for the use of the vehicle, which is based on the vehicle's depreciation value during the lease term. At the end of the lease term, the lessee may choose to purchase the vehicle at its residual value or return the vehicle to the lessor. Vehicle leasing is a popular option for people who want to drive a new car every few years without the financial commitment of purchasing a vehicle outright. It is also commonly used by businesses that need to maintain a fleet of vehicles for their employees.
There are several types of vehicle leases, including:
It's important to note that the terms and conditions of vehicle leases can vary, so it's essential to carefully read and understand the lease agreement before signing.