A lease is a contract made between a lessor (the legal owner of the asset) and a lessee (the person who wants to use the asset) for the use of an asset, bound by rules intended to protect both parties.
Pros and cons of a car lease
Before leasing a vehicle, it’s important to first understand the potential advantages and disadvantages involved. These may include:
Pros of a car lease
- No large upfront payment
- Opportunity to drive latest models.
- Consolidated repayments
- Tax benefits for novated leases
Cons of a car lease
- You don’t own the car and can’t modify it.
- Mileage restrictions
- Administration fees and other charges may apply.
- Large residual value at end of lease
- Reduce Borrowing capacity for Loans.