Basic Principles of Leasing Sales

The buyer pays a certain portion of the car's price (down payment), then pays a fixed monthly amount to fully acquire the car over a certain period (the lease term). For its services, the leasing company typically charges the buyer a one-time commission upon signing the lease agreement.

No collateral is required from the buyer. The car must be insured annually against all risks (CASCO insurance). Insurance costs are borne by the buyer. The insurance cost may vary depending on the leasing company.