Vehicle leasing is the leasing of a vehicle for a fixed duration of time at an agreed sum of money for this lease. It is the best substitute of purchasing the vehicle and is extensively preferred by people for their business purposes. Leasing is practiced both by common people and companies. But, financial lease i.e. the contract basis arrangement should always be preferred to remain risk free.
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Leasing options in Australia
This trend is followed almost everywhere around the globe, be it any country. Different countries have their different leasing policies. In Australia also, vehicle leasing is popular, mainly car leasing. Leasing a car Australia has basically three different options available –
- Novated lease– It is a three way agreement between the leasing company, employee and the employer in which the person leases a car on behalf of the employee, who agrees to take full responsibility of the lease.
- Operating lease– It is usually short term in which the borrower is not bound to pay the residual value of the car but he simply returns it back at the end of leasing term.
- Finance lease– It is most common type in which the car is rented out in monthly installments for a fixed time. The vehicle either has to be returned back to the lessor after the primary term or it has to be purchased for its residual value.
Leasing a car in Australia is a worthy commerce tool for both car dealers and finance agents and offers the customers also a convenient option.
Growth in car leasing sector
The car leasing industry in Australia has seen the sudden surge recently because of the increase in number of subjects showing interest in it. The people owning a large population of cars are now coming in this field to avoid the bothering of maintenance of their vehicles plus to earn some funds readymade.