Car & van leasing is a way of renting a car or van on a long term basis. People save money by leasing. Dealers make money and still own the vehicle at the end of the lease. It is an alternative that many businesses use to provide transportation for their employees.

A lease imposes some regulations such as how many miles a leased car can be driven each year. He or she pays for upkeep, insurance and gas. Some leases include all costs except insurance and gas. Those, however, are more expensive and increase the monthly payments.

At the end of the lease, the vehicle is returned to the dealer for sale purposes. Sometimes the person who leases the car has the option of buying it at that time. Most companies, or individuals, who lease a car, prefer to lease and drive another new model at the end of the lease.

Car payments are higher than lease payments. Plus, with lease payments, there is no worry about depreciation or resale value. A new model is leased every two to four years, which is an advantage to a business person. A new model makes a good impression on clients.

The van or car is owned by the dealer at the conclusion of a rental agreement. He or she has the advantage of selling it for profit at that time. Payments are similar, but generally lower than car payments for outright ownership. The calculations are based on something called the money factor.

The lease itself is referred to as a finance lease. First the company who serves as the financier buys the car. Then he or she collects payments from the company or individual on a monthly basis. Responsibilities are negotiated at the time a new car or van is leased from the lessor. Monthly payments are lower and the lessee does not own the vehicle when the time comes for it to end.