Car leasing

Disadvantages of leasing

Leasing presents the following disadvantages:

  • Commitment to contract for entire validity period
  • Higher fixed costs per month
  • More expensive than purchase

Leasing provides the following advantages:

  • The holder only pays for use
  • Better liquidity, since holder does not need to put up a large amount of money for purchase
  • Fixed rate, so precise monthly costs can be calculated
  • Minimal sales risk, since the holder is not responsible for the vehicle's disposal at the end of contract validity