Recently, “curly” has been attracting a lot of attention to use a car. Many people are interested in car leasing but do not understand the merits of using it or the criteria for selecting products. In this article, for those interested in car leasing, we will introduce the reasons for recommending it, choosing products and plans, points to note, etc.
1. What kind of service is car leasing?
I’m sure many people have heard the word car leasing but don’t understand the specifics. First of all, let’s take a look at what car leasing is like, the outline, and the service’s mechanism.
1-1. Mechanism of car leasing
Car leasing is a service that allows you to rent a car from a leasing company and use it by paying a monthly fee. As a concrete flow, first, select the car that the contractor wants to rent. Generally, the leasing company purchases the car from a car dealer, and the contractor pays a fixed monthly fee to use the car. After setting the contract period first, we will lease. Depending on the product, car leasing is attracting a lot of attention as a “reasonably available” service rather than buying a car.
The reason why it is more reasonable than buying it is because of the “residual price”. Some car leasing products are priced at the end of the contract period or when the vehicle is returned, assuming the vehicle’s trade-in price. The estimated price is generally called the “residual price”, and it is a mechanism that allows the vehicle to be used cheaply by deducting it from the main unit price of the vehicle at the time of contract.
1-2. Is it different from car-sharing and loans?
Some people considering using car leasing may not tell the difference between “car-sharing” and “loan”. In particular, car leasing and car-sharing are often confused, but their services are different. Therefore, it is important to understand the difference before deciding which service to use.
In car sharing, “sharing a car with other users” is one of the major differences from car leasing. Since car-sharing shares one car with other users, it is necessary to adjust the time of use rather than the feeling of a car. Another big difference in car sharing is “using a car prepared in advance.” In-car leasing, you can choose the type of car you like, but you use the vehicle prepared at the station in car sharing. In addition, there is a difference in the “card number”. Car-sharing vehicles usually have the same “was” number as rental cars, so it doesn’t feel like your own car. On the other hand, car leasing is a normal private number, and you may be able to choose your desired number. Therefore, it is easy to use as if it were a car.
The difference between a car leasing and a loan is the “residual price”. At first glance, car leasing is often thought of as a loan payment. However, many general car leasing products have differences, such as payment after deducting the “residual price” and returning the vehicle at the end of the contract. Therefore, it is often cheaper than a loan.
2. Why do you want to recommend car leasing?
What are the benefits of using car leasing? Let’s check why we recommend it.
2-1. No down payment required
Because cars have been used for a long time, many people think they want to ride what they like and choose a higher-grade one. However, to achieve such an ideal, a certain amount of money is generally required. Even if you use car leasing, you do not need to prepare a down payment, even in such a case. Even if you don’t have a down payment, you can use the car with a fixed monthly payment. Depending on the service you use, it is attractive that you may rent a higher-grade car. Of course, there is a lease examination, but you can get in the car you admire without a down payment if you pass the examination.
2-2. The price includes taxes and expenses.
One of the great advantages of car leasing is that it is a “price including taxes and expenses”. Some of the monthly payments include “taxes such as automobile tax”, “automobile liability insurance”, and maintenance costs such as “oil change fee” and “vehicle inspection fee”. However, the content varies depending on each service, so confirmation is required before making a contract. Furthermore, choose a service with a price that includes vehicle inspection and maintenance. You do not have to worry about suddenly a large amount of money being paid out during the contract period. Since you only have to pay a fixed amount every month, it is easy to make a forecast, and who can say that it is the best payment method for household management.
3. Those who recommend car leasing
I want to recommend car leasing for those who have difficulty preparing a set amount of expenses at the time of embarkation, such as cash lump sum payment. Car leasing has the advantage of being easy to use because it does not require a down payment and is a fixed monthly payment.
In addition, since taxes and liability insurance premiums during the contract period are included in the leasing fee, car leasing is also a recommended service for those who want to systematically pay for car expenses.
Also, car leasing may be suitable for those who want to drive a higher-grade car that is difficult to reach with cash lump sum payment because who can use it with a fixed monthly payment.
4. Points when choosing a car leasing product
There are many car leasing products, and many people are wondering which one to choose. What kind of points should be taken into consideration when choosing a car leasing company or service? Let’s see the points of how to choose.
4-1. New or used car
First of all, the point when choosing is “whether it is a new car or a used car”. Not only new cars but also used cars are leased. If it is a used car, the monthly payment will be cheaper. However, not many companies handle used car leasing. Also, in the case of used car leasing, it is necessary to firmly determine whether or not who will provide a car of safe and secure quality. Finding products from a trusted company will be very important.
When choosing a used car leasing, the point is to check whether the vehicle has a warranty and no repair history. In addition, whether or not the product vehicle has been inspected is also an important point to check the quality, so let’s also check it.
4-2. Check the contents of the plan
Most car leasing is a flat-rate monthly payment service. However, since who can freely set some payments, it is important to “confirm the plan details” when making a contract. Depending on the product, there are cases where down payment settings and bonus payments are supported. It’s suitable for people who want to pay in bulk. However, if you do not manage your money systematically and make payments, it will lead to financial pressure later. Pay your money systematically and be careful not to suffer later.
Furthermore, even if it is a monthly fee, the contents will differ depending on the plan contents. Make sure that the monthly fee includes taxes, insurance, vehicle inspection and maintenance fees or that there will be additional costs.
5. Disadvantages and precautions of car leasing
While car leasing has many advantages, it also has disadvantages. It is important to understand the precautions before deciding on a contract. First of all, the point to note is that it is “difficult to customize”. Although who can use car leasing like a car, it is not completely “own property”. Remember that it is not easy to make major customizations so that the vehicle cannot be restored to its original state when it is returned. In addition, depending on how you drive the car, there is a possibility that “payment and additional charges will be incurred.” If the residual price falls below expectations due to overrunning at the end of the contract, a settlement fee may be incurred. Depending on the degree, there is a risk of additional charges if you make a large scratch that reduces the car’s value.
In addition, many car leasing plans require the vehicle to be returned at the end of the contract, so it is a disadvantage that it does not become your car. In addition to that, it is important to note that you cannot cancel the contract halfway. Car leasing cannot be cancelled halfway. If you cancel the contract in the middle of for some reason, you may have to pay the penalty or damage. It is important to firmly understand that closing payments and vehicle return rules are set for each company and product.
If you are concerned about payment and vehicle return rules, we recommend “ORIX Car Lease”. Products that can avoid these disadvantages are available, so even those new to car leasing can confidently use them.
The product lineup is also available from new cars to used cars, so it will be easy to find the product that suits you.
Make your desired car reasonably priced monthly!
The strength of car leasing is that you do not need to prepare a large down payment, and you can use the desired car at a reasonable price with a fixed monthly payment. The advantage is that the payment hurdle at the time of embarkation is lower than a cash purchase. Another advantage is that it is easier to handle as your car than car sharing. If you want to get in the car you want while levelling costs as much as possible, why not consider using a car leasing?