Would Leasing Work On Houses?
We all know about the recent success of car leasing, it has become so popular in fact that independent contrcat hire companies. The leasing method just seems like an attractive option to consumers at the moment which begs the question, would others things work on a uk car leasing basis?
The immediate things that spring to mind is houses, would leasing houses work. Let’s investigate; You’d lay on a down payment on the property, the amount would be dependant on the overall price but would be a small percentage of the houses overall value. You would pay a ceratin amount each month over a 2 year period before deciding to pay the rest.
If you have any sense you will realize that this clearly does not work. Buying a house is whole different little of fish than buying say, a mazda mx-5. Because a house is about ten times more expensive than a typical house the payments would be larger and spread over a longer period.
How about something of much less value, like car accessories for example. Take a sat nav, you would pay a small deposit of say £20 then a few monthly payments of £2 over say, 6 months, then a final payment or simply giving it back. Again this would not work as big and small retailers alike could not deal with the headache of buying and selling 2nd hand goods and the like.
It seems the car market is the only area in which this financing method works, This is because the market for 2nd hand cars is thriving and people are prepare to buy used vehicles. Low value second hand goods are not attractive to reatailers as the re sell value will be so low.
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Tags: car accessories, mazda mx-5, uk car leasing