Are you in Ireland? Do you want to buy a new car, but you don't have enough means for a car loan? We recommend car leasing. In this text, we are going to inform you about how to make a car leasing in Ireland?
How does a car leasing work?
Leasing can be used to acquire several assets. It is a form of consumer credit which is very often used to acquire a vehicle, in particular: a car, a motorcycle, a scooter, etc. The principle of leasing is that a bank or a credit institution, also called: lessor, buys you a vehicle and you reimburse monthly payments. The terms of the contract state that you pay a predefined sum in advance for a certain period of time according to the terms of a contract. In return, you can use the vehicle. On the other hand, in case you cannot pay the monthly payments on time, the lessor can take back the car. After the period of use, the tenant can undertake 2 options:
- Either he buys the vehicle;
- Either he returns it to the lessor.
Why is the price of leasing expensive in Ireland?
The long winter days in Nordic countries such as Norway and Iceland favor the significant increase in leasing prices in these countries. This has also been the case in Ireland since last year. The country is experiencing a shortage of vehicles. This is due to the supply problem all over the island. Due to Brexit, Scotland is also struggling to supply new vehicles. The difficulty of entering the UK can also be said to cover this destination. In Canada, reservations are also on the rise. However, leasing prices are stable.
How to lease a car?
To lease, you must go to a lessor: either a bank, a credit institution, or a commercial establishment. It is the latter who offer the leasing credit. However, leasing will still be managed by a bank. The leasing conditions will be set by the lessor. They are based on the financial capacities of the tenant. Moreover, the lessor can absolutely refuse leasing to tenants if necessary.
A lease contract includes the following elements:
- The contact details of the tenant and the lessor;
- sureties;
- The description of the vehicle;
- The purchase price ;
- The rental period: this generally lasts between 2 to 5 years;
- The remainder to be paid in the event of purchase at the end of the lease;
- The monthly installments to be paid;
- Warnings in the event of non-compliance with deadlines;
- The withdrawal period;
- The address of the authority concerned in the event of a dispute.
All persons fulfilling the conditions imposed by the lessor can have the lease. This practice is quite advantageous in terms of price. Because, it is lower than that proposed by the purchase on credit.
These articles might interest you:
- How to lease a car in Finland?
- How to lease a car in Poland?
- How to lease a car in Sweden?
- How to lease a car in Germany?
