Insuring a Leased Car ~ understanding loans

So it seems a great thing for both buyer and seller, but still a question always arises that Does it cost more Insuring a Leased Carto insure a leased car? Well the question is legit because as the car being handled by many other person’s which obviously increase the danger of damage to the car and it is surely a bad news for Insurance companies. When you lease a vehicle, the auto insurance that you must get is much more extensive and comprehensive than the requirements for when you own the vehicle. But there are some insurance companies too that doesn’t take any extra charge if the vehicle is leased. As the insurance company doesn’t change.

Car, a very common machine and we can see billions of them running every day on the road. They are also a main reason for global warming, which is our major concern nowadays. But who doesn’t want a car? Every person loves to have a personal vehicle on which he can go anywhere and save the important time and money. But owning a car is not that easy for everyone nowadays as the expenditure on other things are increasing, so we need some alternate ways to buy this wonderful thing.

Well basically there are 3 ways of owning a car-Buying, Loan, Lease. Buying as you know is paying the whole money of the car at the time of buying it and then owning car fully without any restriction. Loaning is also a way of buying a car with help of outer source for the money, like a bank or a money lender. Then the third way is the Leasing a car which only just entitles you the privilege to use the car for a certain period of time in exchange for some money.

Now lets understand this car leasing thing more clearly. Well there are certain companies or persons who let peoples borrow their cars for a certain period (around 2,3 or 4 years) and the person borrowing the car have to pay some amount for that period and after the completion of the period the car is returned to the company. This process was started so that if a person has to stay in a country for a few years then he doesn’t need to buy a new car there, he just can borrow a car and then after the work is completed he/she returns the car without any loss. But now it’s also have become a business, as some people want to fulfill their desire to have a car but can’t own it so this way is quite useful them. In leasing the buyer have freedom to change his car after a time period.

Now lets see this way from the company or seller point of view. Is this a profitable work for them too? Well it is, indeed the seller’s are getting more benefits than buyers. Because in this business a person is able lease his car again and again for a long period and which always earn more than the actual price of the car.

Si te gusto este articulo compartelo con tus amigos y gracias