Single-Payment Lease

 Single-Payment Lease

A prepaid lease is a new type of lease that has created its foray into the
market in recent times. In this lease, consumers forego the cycle of lease
payments if they make a giant payment at the beginning of the lease.

There are 2 amounts in an exceedingly standard lease that incur charges and
confirm your monthly lease payments. First, there's a depreciation
charge that accounts for the value the automotive loses throughout the lease term.
Second could be a residual quantity that is the projected worth of the vehicle at
the end of the lease. The total of these two charges gives the monthly
payments on your lease.The idea behind a pre-paid lease is to eliminate the
finance charges for depreciation and solely account for residual value
charges during a single, pre-paid payment at the start of the lease.

Single-payment leases are devised with spendthrifts in mind: no cycle of
monthly payments, a new car each 2 to a few years and no real interest in
getting the vehicle at the tip of the lease. You must solely take into account
this type of lease if you're involved concerning not having the ability to make monthly
payments and have a lot of money upfront.