Many people find themselves in a situation that they need a new car for a small period of time. Or, for others, they enjoy driving new vehicles and the latest models every now and then, yet they don’t want to purchase the car. Car leasing perfectly suits these kinds of people. It is possible to lease a new car for a short period of time, for an agreed amount of monthly payment.
People have been leasing cars since time immemorial, for various reasons. Many think car leasing eliminates the hustle of selling a car that you have used when you are done with it; others argue that it is a way of enjoying new rides every now and then while spending less money. Compared to getting a loan for a new car, a lease arrangement is way cheaper. Thus, many people opt to lease expensive cars, rather than apply for a car loan.
Leasing dates back as far as the ancient Sumer civilisation. Clay tablets gave evidence of lease agreements of agricultural machinery, developed in ancient times. The leasing law was first created in 1750 BC by Hammurabi, the Babylonian King.
In the 1700s, leasing agreements on wagons, buggies, and horses began to emerge in developed communities all across the world. More serious leasing agreements were recorded in the US in 1870 when people started leasing trains and railroad cars.
Modern Car Leasing
Modern leasing of cars was officially started in 1918, by a company called Rent-A-Car Inc. Zollie Frank made long-term leasing of cars possible in 1941.
In 1962, Deutsche Leasing, the first car leasing company was formed by an American based corporation. Other leasing firms developed in Western Europe during this time. This officially marked the beginning of modern day car leasing, all across Europe and the entire world.