What does it mean to buy a car on lease?

Car leasing is a long-term lease. You pay a fixed monthly fee for using the vehicle for a specified period and number of kilometers. As soon as the contract ends, the property is returned to the lessor.

Usually, the initial deposit that you pay immediately is equal to the payment for six months, later you pay a fixed amount every month of the lease. The monthly payments are much lower than large payments on a new car loan.

The leasing contract is usually concluded for 2-4 years. Its duration depends on you.

At the end of the lease term, several things can happen. You can extend the lease of this car by contacting the leasing company a few months before the end of the contract. The company can also offer a discount on the monthly payment because this car is already older than it was before.

In addition, you can return the car. If it is in good condition and you have not exceeded the established mileage limit, then no additional payments will be required.