About Auto Leasing – Hamptons Auto Leasing
Auto leasing is considered a form of car financing where customers have to pay monthly installments. Technically, a car lease is more of a rent rather than a financing method as you don’t own the car. It is a temporary contract between the auto leasing company and lessee where you use the vehicle which is owned by an auto leasing agency for a pre-determined time and then the vehicle is returned. In a way, it can be compared to a rent but if you look into the pricing methodology and structure you will find a distinctive difference. The price of a car lease contract is not based on the value of the car but the value of the depreciation of the car. The difference between the two can be quite significant.
A car lease is an excellent way to own a vehicle but it has its disadvantages too. Let’s look at the concept of a car lease in a little more detail and how Hamptons Auto Leasing is changing the way that the car leasing industry is operated.
Car leasing rates
As mentioned earlier, you pay for the depreciation of a car based on the time period that you will be leasing the vehicle. Based on this, it is possible to find instances where a car can be costly and have a low car leasing rate while a cheaper car can cost more simply because the more expensive car holds a better second hand value over time. In theory, it seems like an excellent way to own a car without the commitment of actually buying one because you will pay for the depreciation anyway, but in reality, the spread between the depreciation value on what you pay to the car leasing company can be so contrasting that it doesn’t make the concept worthwhile in most cases.
Hamptons Auto Leasing was primarily launched to address this problem. We don’t maintain a physical dealership and carry out all our operations by leveraging technology and the internet. This has given us a more efficient and more importantly cheaper platform to get things done. With this leverage, we offer car leases at a much more discounted rate making a car lease actually worthwhile.
Auto leasing terms
The terms of a car lease are generally quite straightforward and can sometimes be a little difficult for people to oblige. As the relationship is such that a lessee uses the car as their own for a lengthy period of time and returns it to the car leasing company, the auto leasing agency has to incorporate adequate steps to protect their asset. This includes rigid rules on vehicle use and hefty monetary compensation if a lessee fails to comply. At Hamptons Auto Leasing, while we cannot lift restrictions completely, we have been able to find a balance that our lessees are comfortable with. By allowing more room for our lessees to breathe and actually enjoy their vehicles for the fullest potential it can offer, we have been able to retain a strong customer base. This has been made possible with our digital business model and lower overall costs.
If you would like to learn more about car leasing or perhaps even find out how you can get started with an auto lease, call us on 845-818-2900.