What Is Auto Leasing?

Although automotive leasing became a very popular method for Canadians to own a vehicle, it is true that many consumers get confused when it comes to leasing a vehicle. So, let’s find out what automotive leasing is about.

The idea of auto leasing is quite simple but many customers do not completely get the idea of it. Even some experts have misconceptions about leasing and give customers wrong impression about leasing. Auto leasing may seem relatively new to automobile customers but leasing, in fact, has long been used in the business sector as a way of financing equipments, buildings, and vehicles. Unfortunately, auto leasing is fairly new to customers and they are still learning about leasing. There have been scams in which their lack of knowledge has been taken advantage of. There are some customers who are leasing vehicles and are not even aware of their unfair leasing contracts. According to Ashly Knapp, head analyst at Auto Advisor which is a Seattle-based nationwide service that arranges auto leases and purchases, “Many people find that leasing has all the negatives of ownership and none of the positives” (Geschwind, 1993). However, do not be afraid of leasing because you will be fully knowledgeable of auto leasing after reading my posts. I am going to give you some valuable information that you need to know about leasing and it will help you when you lease a vehicle in the future. As long as you understand how auto leasing works, you will be able to take advantages of leasing and you may never finance a vehicle again. Here is a simple explanation of auto leasing; it is one of the methods of acquiring a vehicle for a fixed period of time.