28 Apr, 2011
Single Payment Lease, Should We Consider This Option?
Posted by: admin In: Car & Vehicles
A Prepaid lease is a new type of lease that has made its foray into the market in recent times. In this lease, consumers before moving to the cycle of lease payments if they make a large payment at the beginning of the lease. There are two amounts in a classic incur rental costs and determine your monthly payments. First, there is an amortization which accounts for the car loses value during the lease term. The second is a residual amount is projected that the value of the vehicle at the end of the lease.
The sum of these two charges is the monthly payments on your lease.The idea behind a prepaid lease is to eliminate the financial costs for depreciation and represent only the residual value charges in a single payment prepaid at the beginning of the lease.
Single payment leases are designed with spendthrifts in mind: no round of monthly payments, a new car every two or three years, and no interest in a purchase at the end of the lease. You should only consider this type of lease if you are concerned about not being able to make monthly payments and have a lot of immediate cash.