Definition
A type of finance agreement where an individual pays an upfront fee and then regular monthly payments for the use of a new car over a fixed term, usually 2-4 years. At the end of the term, the car is returned to the leasing company, and there is typically no option to buy it.
Why it matters (in Poovi’s context)
This is the primary subject of the video, explaining its mechanics, advantages, and disadvantages for consumers.
Key properties or components
- Upfront payment (often called a deposit, but not refundable)
- Monthly payments
- Annual mileage limit
- No option to buy at the end (unlike PCP)
- Responsibility for insurance, servicing, and maintenance (unless a fully maintained package is chosen)
Contradictions or debates
None.