Automobile leasing - what, why and how to ?
Auto leasing refers to a wide variety of financial products that you can use to buy a car, including loans and car rentals. Purchasing a car In the United States, the most common way to buy a car is to borrow money and then pay it in installments. More than 85% of new and used cars were financed (compared to one-time cash payments). About 30% of new vehicles are rented out at the same time. There are two ways to borrow money to buy a car: direct and indirect. A direct loan is where a borrower negotiates directly with a lender. Indirect financing is arranged by the dealer where the car was purchased. By law, an indirect "loan" is not technically a loan. When a car buyer receives a rental car from the dealer, the buyer and seller sign a partial sales agreement, not a loan agreement. The dealer then usually sells or sends it to a bank, credit union, or other financial institution. Knowing in advance what you need to know, which financial institution will buy the contract. The bo...