Hi everyone, this is my first thread in the Autolanka forums.
I searched the forums but I couldn't find anything related to this topic so here I am.
I have researched about this topic and I want you experts to comment on my findings.
I am confused about the leasing process that takes place in Sri Lanka. According some articles that I read on the internet, leasing is essentially equivalent to renting. For example, let’s assume that I plan to lease a luxury car for 3 years, we will also assume that it has a sticker price of 150 lakhs at the dealer. According to what I read, the down payment and the monthly installments are calculated based mainly on the depreciation of the car for the span of 3 years that I use it. If the car is 100 lakhs after 3 years, I will have to pay 50+ lakhs for the depreciation, interest and taxes. So in other words I simply can dump the car at the dealer after 3 years and walk away paying the required amount which will be 50+ lakhs, if I really like the car and I want to own it, I will have pay the remaining residual fees which will be 100+ lakhs. I asked whether this is the process involved from my father, he replied saying that the full amount of the car should be paid to the leasing party whatever the leasing period is. So in other words if I agree to the 3 year lease I will have to pay 150+ lacks to the leasing party and I will own the car after 3 years.
I hope you people can understand what I am trying to convince; maybe leasing is a complete different concept from what I have understood, if so please feel free to correct me.