The Consumers Guide to Auto Leasing
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Car Leasing 201 - How Car Leasing Works

It's really not that hard how car leasing works!

As we’ve learned, a lease, or car lease in this topic, is simply an agreement between two people/companies/parties, that specify the terms and conditions for the rental of a property, such as a car. For vehicle or car leases, this agreement is not between the consumer and the car dealership, but between the consumer and the leasing company. The leasing company is selected by the dealership.

The car, truck, bike, or whatever the consumer is leasing, is actually sold to the leasing company as selected by the dealer. The dealer, then in turn rents (or leases) the car to the consumer. So basically, the dealer only acts as an agent or representative for the leasing company and negotiates the terms and conditions on behalf of the leasing company, which under those terms and conditions the consumer will rent the car from the leasing company.

Part III: How Car Leasing Works Diagram How Car Leasing Works Diagram

 

 
   
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