A type of car loan available in the market that differs a little from car financing is the car operating lease. This is different in the sense that the lease includes the running cost of the vehicle. When the payments are being made on a monthly basis the buyer of the lease will also have to pay the maintenance cost of the vehicle that can be anything from fuel to tire repairs. The repayments that are being made are all considered to be an off balance sheet product and there is one payment that covers everything concerned with the car being financed.

This sort of car lease is usually for the short term and used by companies and business that provide cars to their employees. It allows them to maintain and update their vehicles with minimum problems and hassle and they do not have to retain the ownership.

The payments made are usually the lowest of any type of car financing and helps companies to retain a budget. It helps improve the return on assets and can also result in higher earnings due to the savings made.

The car operating lease is practical for businesses because the lessor retains all the risks attached to the car and when the car becomes outdated in a year or so the car can be turned in or upgraded.

The car operating lease has low monthly payments, is considered tax deductible and also provides for less documentation. Individuals usually do not opt for this type of lease as it is operational and typically short term thus not feasible for the individual car owner