For whom is car leasing really worthwhile??

adminonApril 28, 2022February 4, 2022Leave a Comment

Handshake at the conclusion of the car leasing

For someone who needs a new vehicle but doesn’t want to buy or finance one, car leasing is an option. In contrast to buying a car, car leasing is quite profitable for some drivers. Instead of paying years of installments at the bank, you usually only bear the cost of a monthly "rent" and do not have to worry about selling it later on. this variant of vehicle ownership is becoming increasingly popular.

Since the end of 2008, car leasing has been a financial service requiring a license in the federal republic of germany. Leasing is easier than applying for a loan from the bank, which is why about one in five private cars is now leased. But car leasing is not always worthwhile for private individuals. in our magazine, we explain the advantages and disadvantages of this option, compare it to financing and buying a car, and look at special cases such as leasing used cars or without a down payment.

1. How does the car leasing work?

Car leasing means that interested parties rent the vehicle for a predefined period of time. The car, in most cases a new car, is used by the owner but remains the property of the lessor. This levies for the use a regular fee or a one-time payment. Providers of car leasing services include independent leasing companies, manufacturers and car dealerships.

Financing conditions depend on the provider: some require a monthly payment, others are limited to a payment at the beginning and at the end of the leasing period.

Only by serious reasons the contract of car leasing can be canceled, for example by emigration or theft. As long as the lessee is in possession of the vehicle, he is also responsible for maintenance work, repairs and insurance.

Mileage leasing

The most common way to lease a car is mileage leasing. Thereby a term is fixed directly at the beginning of the lease, you drive the car during the leasing period. If you drive more during the period, you have to pay for the additional kilometers. You will get a refund if you have driven less than agreed upon. Often the amounts for more kilometers are higher than the repayment for less kilometers. It is therefore worth taking a close look at the ratio in the contract beforehand.

Mileage leasing usually involves less risk for the lessee, provided he knows his average mileage. In most cases, the contracts also include a tolerance range of 1500 to 2500 kilometers, so that a realistic estimate will not result in unexpected costs.

Residual value leasing

With residual value leasing you enter into a significantly riskier form of leasing. In this case, the value is estimated before the contract is signed, how high the residual value of the leased vehicle will be at the end of the lease term. Based on this, the monthly leasing rates are then determined. If the value of the car is higher than the estimate, you get money back. As a rule, however, it is the other way round. If the car is worth less than previously estimated, the difference is due as an additional payment.

The lessee assumes the so-called residual value risk. It is not uncommon for the residual value estimate in the contract to be too high. Moreover, the residual value of leased vehicles is a very uncertain form of calculation basis. Market fluctuations do have a considerable influence on it.

A residual value leasing with right of tender also offers the option of buying the car at the agreed residual value at the end of the contract. However, the lessee does not have the right to buy the vehicle. If the agreed residual value is lower than the actual value, it is possible that the lessor will not agree to sell the vehicle. This form of leasing therefore also involves incalculable risks.

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Safety is the top priority for the vehicle. Nevertheless, it is nice to see the car paint shiny and shining. But the cleaning must also be right.

Below you will get tips all around a car polish, from the possibilities to the sealing. In addition, we will discuss the cost of a professional car polish in more detail.

Car polishing: the possibilities

There are different ways to polish your car. On the one hand, you can do this with a polishing machine, or polish the car by hand. We will now briefly explain the two possibilities.

Polishing the car with the machine:

First of all, it is possible to polish the car with the help of a machine. This is basically the simpler alternative, because it requires less effort. In addition, the cleaning result will usually also be neater. Even small scratches can be easily removed with a polishing machine. However, care should be taken when using it to avoid accidentally damaging parts of the car’s paintwork. When polishing a car with a machine, you work with cross movements. Also an even pressure is very important for an optimal result.

Car polishing by hand:

But then it is also possible to polish the car by hand. Here, too, the vehicle should be thoroughly cleaned before polishing. Then some polish is applied to the paintwork. After a short soaking time you take some polishing cotton or a cloth. the polish is then rubbed off in circular motions.

hard cases: polishing a black car the right way

Especially on black cars a thorough polish can be difficult to achieve. Because due to the dark colors you see relatively quickly scratches. But also dents are noticed much faster on dark cars. But a black car also has its advantages: it looks incredibly classy and shines too.

to maintain this, some tips must be followed to polish the black car properly. First of all, the car should be thoroughly cleaned before polishing, ideally in a car wash. Polishing should also not be done in direct sunlight.

1.) apply the polish gently with a sponge or polishing cotton on the lacquer
2.) let it dry completely
3.) remove the rest with a microfiber cloth
4.) you already have a shining varnish!

Polishing car paint with a home remedy – is there such a thing??

A question that often comes up is whether you can polish the car paint using home remedies. This is possible, but only to a limited extent. It is popular to use a toothpaste for this purpose. It is important that this does not contain coarse grains, otherwise scratches can appear relatively quickly. With the help of some margarine you can also achieve a certain shine on your car. Nevertheless, you will only achieve moderate success when polishing your car with home remedies and it is therefore advisable to use a proper car polish!

How to polish away scratches on the car?

In addition, the question often arises "can car scratches be polished??"This is indeed possible with the help of special car polishes. Of course, you can also remove scratches in the paint professionally, but this again costs a lot of money. So it is easier to get the right polish to polish car scratches. The depth of the scratches also plays an important role. you can easily check this by feeling the scratch with your fingernail. If it sticks, it is a deep scratch and car polish can not help anymore. Then this must still be filled with varnish before the autopolitur.

However, if the scratch is only superficial, it can be removed easily. The use of polishing cloths is important here. The paint should also be thoroughly cleaned before applying the car polish. Also with the use of sandpaper is caution advised. At best, this should be additionally moistened to polish car scratches.

– first of all record the depth of the scratches!
– small scratches can be easily removed with a suitable polish
– always use polishing cloths and moisten the sandpaper before use

Sealing options for cars

Sealing a vehicle after polishing makes sense in any case. In this way, the vehicle paint is protected, stays clean longer and, above all, is more resistant to further contamination. There are some car polishes that even contain wax components and thus offer a useful sealing option. In any case, the following should be considered when buying a car polish.

But there are also other sealing possibilities. Besides a car polish you can also buy a good paint sealer. But also special detailers offer a good sealing option for your car. Of course, there is also the possibility of having a sealing done professionally. Just as you can seal the paint, this is also possible for the glass and rims.

Too lazy to do it yourself? Have your car polished!

If you can’t or don’t want to do the car polish yourself, you can also have your car polished. Here you can count on a professional result, which also has its price. But this also depends on the effort. This depends on the size of the vehicle, the condition of the paint and other aspects. Therefore, the cost of car polishing can not be determined universally. Basically, however, you can count on a cost point from about 180 euros. Mostly you get additionally your rims cleaned.

However, if a nano paint sealant is added, the cost increases. From about 300 euros this service is possible. In comparison, cleaning by hand only costs approx. 25 euro!

Car leasing can be interesting not only for the self-employed, but also for private individuals: as a rule, they receive a brand-new vehicle. However, there are a few things to keep in mind with leasing contracts.

By claudius maintz

In principle, leasing is a kind of rent: the car can be used for a certain period of time, for which a monthly fee is paid. The amount depends on the depreciation of the car during the leasing period (usually between 24 and 48 months). down payments of up to ten percent of the purchase price of the vehicle are common. the higher the down payment, the lower the monthly rate can be. There are now also leasing offers that can be concluded without an additional payment.

Vehicle remains the property of the leasing bank

The leasing bank buys the vehicle and becomes its owner (lessor) – not the customer! The customer only receives a right to use the vehicle for a limited period of time. Here, the difference to financing or installment purchase becomes clear: when buying a car with a loan from a bank, the buyer also becomes the owner from the beginning. Once the loan is paid off, you can keep the car.

Differences in car leasing contracts

At mileage leasing A mileage per year is fixed at the beginning of the lease. For deviations upwards and downwards, a bonus and malus amount is defined, which should be the same for more and less kilometers. Anyone opting for mileage leasing should know their mileage well. attention: due to corona and homeoffice this is currently often lower than usual. Even with a change of job or new life situations, the real mileage can change quickly.
With the so-called Residual value leasing at the beginning the value of the car at the end of the leasing contract is predicted. There is no mileage limit. At the end of the lease term, the customer (lessee) must pay the difference between this estimated value and the actual market price that can be achieved at that time.

Risks for consumers with residual value leasing

Unlike mileage leasing, the customer bears the full risk with residual value leasing. If the value of the car falls below the calculated value, the customer must pay the difference. There have been significant, unforeseen losses in value, for example as a result of the diesel scandal. For these cases, there are leasing contracts with right of offer – a subform of residual value leasing. the leasing bank can require the customer to buy the car himself in the event of a severe loss in value.

Another danger: some providers set the residual value unrealistically high when the contract is concluded in order to be able to calculate low leasing rates. At the end of the leasing contract, there is a large gap between the calculated and the actual residual value, which the customer has to pay.

It can also happen that there is a dispute about the residual value at the end because the lessor sets it too low – for example, because of alleged damage. It can therefore pay to have the car appraised by an expert shortly before the end of the contract. With mileage leasing, on the other hand, the dealer, manufacturer or bank bear the residual value risk.

customer pays for maintenance, insurance and accidental damage

Over the entire leasing period the car must be well maintained and cared for (contractual consumption). The customer is responsible for the car. As a rule, the customer must ensure timely maintenance, have repairs carried out at his own expense, pay taxes and take out insurance. In the event of a total loss, the installments must usually continue to be paid. The residual value also decreases, because the car is then an accident vehicle. This risk can be covered by so-called GAP insurance.

Car leasing offers tax advantages for business customers

No question: leasing is most interesting for business people. You can deduct the monthly installments from your taxes. When buying a new car, only one sixth of the purchase price per year is tax-deductible, but when leasing, the full rate is deductible every month.

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1. How does the car leasing work?

Mileage leasing

Residual value leasing

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