Is Leasing the Same as Ownership?

However, since a lease is different from an outright purchase, the car has to be returned after the expiry of the lease. In some cases, you can get a new lease on the same car and go along with the monthly payments once again. Or you can take a lease on a new car. The leasing arrangement is thus similar to renting a car for a specific duration and the lease payments are similar to rental payments.

Things to be Careful About

However, there are some aspects of a leasing arrangement which deter some people from using this option. It is important to be aware about these aspects in order to make an informed decision and to avoid being surprised by things that emerge later on. One of the things that must be kept in mind is that a lease is basically a kind of rental. So although you get to use the car and keep it in your possession, technically you do not become the owner of the car. The owner is the leasing company and at the end of the lease you will have to return the car to the company. This also means that you cannot sell the car to any other person since you are not the owner. Read More: