The term Car Lease is used to refer to one the methods by which an automobile may be financed. A Car Lease allows one to drive an automobile by making relatively low monthly payments to a leasing company or bank. The payments serve to compensate the lease company for the depreciation in value of the automobile during the time it is being driven. The Car Lease company will also assess a monthly finance charge that is similar to interest on a loan. This compensates the company for the use of their money that is tied up in the purchase of the automobile from a dealer. The Car Lease company actually owns the automobile. The automobile is leased for a specific period of time and is typically returned to the Car Lease company at the end of that time. Taxes, fees, maintenance, and insurance are all the responsibility of the leasing customer, the lessee. The customer is usually responsible for excessive damage or mileage that is incurred during the Car Lease period.

For more information, see: The Lease Guide

Return to LeaseGuide.com Home Page

 Comments and questions should be directed to contact@leaseguide.com.
Copyright ©1999-2006 LeaseGuide.com. No reproduction permitted without permission.