Car leases are defined as follows: The transferal of a vehicle to an individual who must, in turn, pay monthly installments over an agreed length of time. Maintenance and repair costs must be covered by the leaseholder. This is why it is mandatory to buy comprehensive car insurance. However, the leaser will remain the car owner. Installments are composed as follows:
- Cost of lease
- Vehicle depreciation
- Cost of issuing contract
- Booking and encashment during period of lease
- Provision for sale (e.g. to garage)
- Profit for financing provider
