SINGLE-PAYMENT LEASE

SINGLE-PAYMENT LEASE

Single-Payment Lease - A pay as you go lease is a new kind of lease which has made its foray into the  market in recent times. In this lease, consumers forego the cycle of lease payments in the event that they make a big fee at the beginning of the lease.

There are two amounts in a standard lease that incur prices and  determine your monthly lease payments. First, there is a depreciation  charge which accounts for the worth the automotive loses during the lease term.  Second is a residual quantity which is the projected value of the vehicle on the end of the lease. The sum of those two charges offers the monthly  payments in your lease.The concept behind a pre-paid lease is to remove the  finance fees for depreciation and only account for residual worth  prices in a single, pre-paid payment originally of the lease.

Single-payment leases are devised with spendthrifts in mind: no cycle of  month-to-month payments, a brand new car every two to 3 years and no interest in  purchasing the car at the finish of the lease. You must solely take into account  this sort of lease if you're concerned about not with the ability to make month-to-month  payments and have quite a lot of money upfront.