What is a Consumer Lease?
A Consumer Lease is as a finance finance product wherein a consumer leases a vehicle from the financier, be it a bank or a financial institution, with set monthly repayments in the form of instalments over a predefined term. Generally the term varies from 12 to 60 months. The agreement should also incorporate a balloon/residual value at term end in line with the likely value of the asset at that time.
Advantages of Consumer Lease
- The interest rates are fixed for the term
- Can be structuered with or without deposit