New car leases
a dream of life because a car means something more than just a vehicle to travel but a dream come true for many in their lifetime. In the developed world, even though it is not considered as a luxury, but a passion and fashion and also an important part of every day life. On the other side of the world, it is a luxury and dream coming true and symbol of prestige and prosperity.
Growth of middle-class in the developing world has played a major role in enhancing the number of the motor vehicles, especially, cars on the roads, throughout the world, especially in the Middle East, Asian and ASEAN countries. If there is an obstacle in the growth path of the sales in cars and other vehicles, it is the soaring fuel prices. Whatever is the price, the growth momentum has not been slowed down anywhere in the new business powerhouses.
China, the major Asian economic powerhouse is playing the lead role in production and sale of cars in the world now. Like any other cheap product, China has gained momentum in manufacturing and sale of cheap cars in the world. Fast emerging economies present the main opportunity for long-term car sales growth and estimated to reinforce the global car market to over 60m units by 2009. The China factor based on their steep force of numbers presents the major long-term demand growth opportunity and it is estimated that the car market in China will cross the 6 million units target by 2009, supported by the ever rising demands for replacement and new ones.
For many large corporate houses, leasing of new cars is the easiest and cheap way of providing vehicles to their employees. No maintenance and no hassles of draining of money for new purchases. Car leasing is an advantaged option in many ways. If someone wants to upgrade to a new model, it is completely hassle free and no worries of selling the old vehicle. Just on expiry of lease period or with a serious discussion in case of a long time and large business partner, it can be upgraded conveniently.
The main objective of leasing a car over buying a second hand car is the cost. For instance, a second-hand Ford Focus 1 year old for 14k and an average load company would charge around 420 per month for three years. On the other hand, lease of a new car for personal use will cost only pay 249.00 per month, a total saving of almost 170 per month.
In the vehicle business, dealers are playing a major role. They are on the most advantaged position among many business segments since car is a necessity for the growing middle class society. All major car manufacturers witnessed exceeded sales target in the world markets. The car market itself witnessed major changes and brought out many strategies, especially with the size, price and luxury as well as new cars and used cars sale. All the manufacturers are aware of the fact that car dealers are the vital organ in their business and offering very high commissions on their sales.
In the US, the auction houses present a good reward to the dealers since the trick of taking advantage of hurried sale by the financial institutions. The system works in a very different but an easy way of making quick money. Cars of the defaulters of car loans, thousands in numbers, get repossessed by the financial institutions and auctioned off quickly in order to avoid the huge storage cost of repossessed cars. Not only the dealers but many people know about this business and taking advantage of this easy and direct way to find dirt-cheap offers that look unbelievable for an average car buyer. This is a real business happening and advantages many car dealers as well as ordinary citizens who have knowledge of this business. This is a major protected revenue source for many dealers and they would like to keep it as a secret.
Obviously, there are many benefits for car leasing and one among them is the tax benefits for business car leasing. For a business owner, a leased car for himself or lease company cars for team members could be obtained at a great rate. It is always an easy and an advantaged option since everybody would like to drive a new vehicle with a second hand vehicle\\\'s price.
Many car manufacturers, especially the costly car segment, thinking on the options of giving away their new cars on lease. BMW announced recently that their new Hydrogen based cars would be leased to selected customers rather than sold because of its high price. Leasing rates would be similar to those for a top-end BMW 760li with a full-service package.
Anyway, it is clear that the car market is very hot with lot of options in front of the major players. As the consumer is the king, the benefit will be to the consumers. The competition will bring further opportunity of options on new, used or leased markets. As the middle-class grow in the fast developing Asian countries, scenario has been shifted to the new locations. On the basis of this opportunity, many renowned companies have shifted their base or relocated or established grounds in those countries where the fierce battle will take place.
Somebody has to be hurt from the whole business of leasing, that is going to be the financial institutions. Their hope on the financing of new cars getting disturbed and they have options in the second hand, used cars. Consumers may not require a leasing financing and the financial institutions will have to come up with a new strategy to counter the leasing army.
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