Rental Contract Lease Option

The rental contract is one of the options offered by leasing companies that has been growing in popularity. It’s a great option for any business looking to lease a vehicle because it has many benefits that can help make your leasing experience a great one that you won’t find with many of the other options. The rental contract option is intended for companies while individuals can benefit from the personal contract rental option.

When you choose this option, your contract will be tailored to your business requirements and the length of the contract will vary based on your needs. To help you get a better idea of ​​what you can expect from leasing with the lease option, the benefits and drawbacks are listed below.

Benefits:

· The terms and conditions of the contract are simple and easy to understand, which is very important every time you enter into a legal contract.

Your monthly payments will be lower than with other options.

· Requires a minimum initial deposit.

· No capital will be immobilized in the depreciation of assets.

Fixed monthly payments make it easy to balance your budget and keep your business on track.

It offers a full maintenance service, so you’ll only be responsible for general maintenance, which can be a huge relief, especially for small businesses.

When the contract ends, you will no longer be responsible for the vehicle.

Disadvantages:

· It is a fixed contract.

· If you end the contract early, you will most likely have to pay an early termination fee. This amount will be determined by the leasing company.

If you exceed the mileage limits or if the vehicle has excessive damage, you will be responsible for paying a fee. The amount will be based on the damage caused and the number of miles driven.

Before signing the contract, you will be offered the opportunity to review and add other services that may be of interest to you. These include competitive insurance products, routine services, replacement vehicles, and roadside assistance, to name a few. You should review them carefully and only choose the options that benefit you the most. This will keep your cost down while still giving you the services you need.

Once you reach an agreement with the leasing company on the mileage limitations, rental rate, and other available options, you’re ready to sign the lease and leave in your new leased vehicle. Once you discover all that the lease option has to offer your company, you will surely agree that it is a great option that deserves consideration before making your final decision.