Which is better, a car loan or a car lease? What is the best way to buy a car: on credit or leasing? From an entrepreneur to an individual, is car leasing profitable?
Similar to both credit and lease relationships. How is leasing different from a loan? If a legal or natural person takes out a loan for the purchase, the car becomes his property. In a relationship, the lessor acquires, and not the one who will actually use it. However, in case of financial leasing, after the expiration of the term of the contract, the property can be transferred to the lessee for ownership at zero cost. And when renting, the property does not transfer to the tenant, for this you need to draw up a separate contract of sale.
There is one misconception about car leasing: the pros outweigh the cons anyway. It is not always so. Sometimes it is more profitable to take a loan than to draw up a leasing agreement. In each individual case, before making a decision, you must first consider the different conditions for purchasing cars: the pros and cons of leasing, renting and credit; additional factors and your personal preferences.
It is especially beneficial to arrange a car in the form of leasing for legal entities that are VAT payers. This is due to the fact that when purchasing a car on credit, VAT will be received for reimbursement only on the cost of the car, and interest on the loan is not subject to VAT. When leasing, VAT will be refunded on the entire amount paid by the lessee. In any case, before the transaction, you need to carefully calculate what is more profitable for the company: to receive a VAT refund or to reduce income tax. If you carefully weigh the proposed conditions, you can save up to 20% of money.
What is the advantage of leasing for a private person? A service such as , the advantages are obvious. It is often more economical than a loan, and it also eliminates some of the hassles and worries that come with a regular loan, such as:
- when leasing, all the risks associated with the use of a car fall on the shoulders of the lessor as the owner of the vehicle;
- creditors of the lessee cannot take away the car for debts;
- car manufacturers often provide leasing companies with significant discounts on purchases, and then there is a savings compared to a loan;
- leasing companies are more willing than banks to meet the needs of the lessee if the latter has temporary financial difficulties and asks to defer payment;
- under a leasing agreement it is easier than under a loan agreement to purchase a non-new car;
- after the expiration of the contract, you can change the old car to a new one.
Economical or convenient?
If you focus on the lowest price, then it is most economical to buy a car with your own funds, without borrowing money from either banks or people. But the benefits are different. Perhaps someone will need to save for a very long time, but a car is needed now for business. And in the case of acquiring it on credit, the profit from use will quickly cover the interest and commission of the bank. Then a loan or leasing is more profitable.
Someone believes that it is more profitable to save time and nerves, rather than money. Leasing is a great opportunity for this. Under the leasing agreement, you can get all kinds of additional services. For example, a leasing company may carry out car repairs, washing and other maintenance.
She can arrange additional insurance, storage of the car, and in case of its repair, provide the lessee with another car for a while. You can include a condition in the leasing agreement that additional equipment, such as a GPS navigator, will be installed in the car. The terms of a loan or lease usually depend on various factors, they are influenced by:
- the solvency of the person who takes the loan;
- term of crediting or leasing;
- loan currency:
- cost and model of the car;
- the amount of the down payment;
- Availability additional services when leasing.
The more reliable the lessee or borrower, the lower the bank's interest or monthly lease payment, less an initial fee and less appreciation of the car as a result. And vice versa, the smaller the package of documents required to conclude a loan agreement or a leasing agreement, the more expensive the car will be.
For example, if a loan is granted without a certificate of income, then the interest for using the loan is higher. This does not mean that the bank or the leasing company does not trust the borrower, but the risk for them is higher in this case. Often the borrower has the opportunity to obtain all the necessary documents, but prefers to save time. As for the term for which money is provided on credit, the shorter the term, the lower the annual interest rate (sometimes it can even be zero). If the loan is issued in a foreign currency, the monthly payment will be less.
You need to carefully read the car loan agreement before signing, so that there are no unpleasant surprises later. Sometimes the interest rate is very low, but there is an additional monthly payment or a one-time commission upon purchase. The commission is often charged on the entire cost of the car, and sometimes the down payment is not even taken into account, which is very unprofitable. You can ask the bank manager to print approximate loan repayment schedules under different conditions. If you carefully consider them, you can see the hidden points and after that decide which option is best.
Basic and special lending programs
This is the simplest and most understandable program. The fee usually includes the cost of the car, payment for vehicle insurance (the cost of which can be included in the body of the loan) and interest on the loan. The basic program usually does not provide for any commissions or additional payments. There are two types of loan repayment schedule - annuity and standard.
With an annuity scheme, the monthly payment throughout the entire loan period is the same, with a standard (classic) one, it decreases every month. With an annuity, the rise in price of a car is greater, that is, as a result, standard payments are more economical. But the financial burden on the borrower in the first half of the debt repayment period with the classic version is greater than with the annuity.
Available for certain car brands. From time to time, different cars from different manufacturers fall under these programs. Short-term promotions are often held by car dealerships in conjunction with banks. Their goal is to simultaneously stimulate both the issuance of car loans and car sales. Tracking such promotions, you can save a lot when purchasing a vehicle.
A car loan with no down payment is an attractive option for those who do not have the funds for a down payment. In this case, some banks especially carefully check the solvency of the borrower and sometimes require a guarantee. With this option, the interest rate is higher, and often insurance cannot be included in the cost of a car loan.
Once upon a time, a car was a luxury, and only a select few had it. But time goes by, everything changes. Now the car is a familiar means of transportation. With the current pace of life, it is much more convenient to get from one point to another by your own car, which is comfortable and fast compared to public transport. Every year there are more and more people who want to become owners of cars.
But there is one small catch: a car is quite an expensive thing, and few can afford to pay its full price right away. Quite common are consumer loans. They are given for all types of goods and services and for almost everyone. Transport also did not go unnoticed. There are 2 most common programs that allow you to pay the cost of a vehicle gradually - leasing and car loans. Very often people do not understand what is cheaper and what is more expensive, how one program differs from another and what is better for them: leasing or a car loan?
Credit and leasing: features and differences
A car loan is a loan for the purchase of a vehicle, which is given by a bank in the amount of 70-100% of the cost of the car. In this case, the car acts as collateral for the loan, and in case of non-payment, the bank can safely pick it up as debt repayment.
Leasing is an agreement between a leasing company and a client, according to which the company buys a specific car in its ownership and leases it to the client with the right to purchase. The main feature of leasing is that the leasing company itself buys the vehicle and acquires all ownership rights to it. Her client is just using the car temporarily until he pays the full price.
From this side, the loan is a little more pleasant for the client due to the fact that after signing various kinds of documents, the car becomes the property of the borrower. The main difference between leasing and a car loan is that leasing operates on the principle: money first - then goods. Credit has the exact opposite scheme: first goods - then money.
Leasing and car loans have different payment terms. The lease agreement is generally concluded for 3 years or less. A loan is for 5 or more years. A good bonus in leasing is the absence of various hidden fees in payments of additional payments, which will definitely be with car loans.
Advantages of leasing
By signing a leasing agreement, you make an initial payment, and then pay mandatory monthly payments. Since the car remains the property of the leasing company until the full price of the car is paid with interest, you drive the car by proxy. Inspection, insurance and other documents are issued by the leasing company.
You just need to sign the contract and make an advance payment, which is very convenient, but the financial side for these costs will fall on your shoulders. The cost of all preparatory procedures is usually distributed over the entire amount, which leads to an increase in monthly payments. This is also not bad, because it is often insignificant.
In addition to the fact that, having paid the entire cost of the car, you will become its full owner, there is another attractive side of leasing. It is possible to conclude an early return agreement. Its essence is that you pay the partial cost of the car and rent it back to the company. For example, you have entered into a similar contract for 2 years. After this time, the company takes the car from you, and you immediately lease a new model on the same terms. This is very convenient: absolutely no worries about selling a used car, buying and registering a new one (as you remember, the leasing company takes care of all this). In addition, you are always on a new car, without paying its full cost.
Another positive side of applying to leasing companies is that the conditions for borrowers here are not as strict as in the bank, besides, the decision is made much faster. The thing is that the company does not need to send reports and coordinate everything with the Central Bank. The interest on leasing is much less than on a loan. Alas, this difference is not visible due to taxation.
Car leasing can be an interesting option for spouses who have certain problems. The leasing company does not require the consent of both family members to execute the contract. During a divorce, no one can claim the car, since neither of the spouses is its owner.
If you're in a position where you can't own a fancy car, then leasing is a great option. Your reputation and ownership of the car will be hidden. This is usually used by officials in government posts so that there are no questions about where the money to buy a car came from.
Leasing can be very useful for those people who want to buy special equipment for their personal use or for starting a business. The thing is that there is no lending for the purchase of special equipment for individuals, because the demand for this service is extremely small.
Leasing companies are car dealers' favorites because they always buy a lot. These companies are often the owners of gas stations, car washes, shops with accessories, and almost always - the owners of contracts with car dealerships.
It is thanks to this that leasing companies can afford to provide their customers with various discounts. And if a discount at a gas station or car wash is a trifle, then a few percent discount on buying a car will help you save a lot.
Disadvantages of leasing
No matter how happy all of the above may sound, leasing still has a number of disadvantages. A leased car is a bit more expensive (by 2-3%) than a car on credit, since our legislation imposes a tax on lease payments, which is called VAT.
One of the main disadvantages is that, under the contract, your car will be serviced only in those places indicated by the leasing company (usually it has signed contracts with various service stations). Thus, the company insures its property against the actions of non-professionals.
There is still a possibility that the leasing company will go bankrupt. In case of any financial difficulties, the company's creditors have the right to seize all of its property. The probability of such a development of events is small, but still it should be taken into account.
Leasing or credit - which is more profitable? The calculator for calculating leasing for legal entities and individual entrepreneurs on our website will help you right choice. You will learn about the advantages of leasing over a loan not in words, but in numbers.
The model makes it possible to analyze the effectiveness of each of the methods of acquiring property for organizations using the general and simplified taxation systems, as well as taking into account the application of such special taxes as property tax and transport tax.
It is possible to choose the construction of schedules for credit and leasing in the form of annuity (monthly equal) or differentiated (decreasing monthly) payments.
Model can be used to check the "adequacy" of commercial offers from banks and leasing companies, taking into account the hidden costs associated with the difference in taxation of the two schemes.
It is often impossible to set a schedule in the model that fully corresponds to the proposal of a financial company (bank or leasing operator) because they use their own costing methods. Therefore, there are several “yellow” fields in the calculation schedules that can be manually corrected to obtain the final cost comparison between the schemes.
Credit - the provision by a banking institution to an individual or legal entity of a sum of money for the purchase of the required goods, capacities, cars and other property. Funds are subject to return with interest in accordance with the loan agreement.
Leasing is a service in which an individual entrepreneur or a legal entity leases property for a long period with the possibility of subsequent redemption. A scheme with a mandatory subsequent redemption is called financial leasing (this is its difference from operating leasing - a simple lease). Relationship chain different parties looks like that:
- The company providing this service (the lessor) buys expensive machinery or equipment from the manufacturer. Also, the subject of leasing relations can be retail space, buildings, etc., except for land plots and natural objects.
- An entrepreneur or a representative of an organization applies to a leasing company after collecting the necessary documents. A prerequisite is the first installment (advance), this figure will be from 5 to 20% of the total cost.
- The transaction ends with the signing of a lease agreement indicating the percentage of remuneration and the validity period. The subject of the contract is transferred to the use of the tenant for a specified period of time.
Both terms refer to financial instruments that allow you to get the necessary transport or equipment for use without paying the full amount. Each of the services has its own list of advantages and disadvantages.
Advantages of leasing over a loan
The full development of the company is not complete without financial costs for the purchase of additional equipment or transport, information support, computer software etc. Few entrepreneurs have free funds, but there is always a way out: even if there is not enough money, you can always use services such as credit or leasing. What is more profitable, it is necessary to consider according to several indicators. Let's analyze the benefits of leasing over a loan.
Terms of Service
Lending activity banking system regulated by the conditions for granting large loans to entrepreneurs and LLCs. So, in order to borrow the amount required for the purchase of property, it is necessary to submit to the bank a package of documents, balance sheet indicators, and copies must be certified by a notary. As a result, only data collection and notarization will take at least a week. Consideration of documentation by the bank takes 2-3 weeks, during which economic indicators, official reports and papers are carefully studied.
Leasing companies also require confirmation of solvency, but here the client is treated more loyally. The lessor considers not only “dry” documents; when studying the client’s data, all positive aspects are taken into account, including unofficial income. This is due to the fact that the subject of leasing is always liquid for the insurance company, because. usually it specializes in the acquisition of such objects. This means that the leasing company is less afraid of the borrower's default.
Confirmation of the transfer of property to a financial lease is carried out within 1 week in 90% of transactions with a low percentage of failures.
Collateral
Obtaining a loan for the purchase of a car or equipment provides that the subject of the contract becomes the property of the borrower, however, it is considered a pledge until the loan is paid in full, including interest. That is, if you refuse to make regular payments, the item purchased at the expense of the loan can be seized by the bank through the court (and more recently, also out of court, if there is such a contract).
non-targeted money loan provided by the bank solely on the security of real estate, transport, fixed assets, goods in the equivalent value. In the absence of suitable collateral, the loan will be denied.
The lessor, on the other hand, remains the owner (but not the owner) of the leased asset during the entire term of the contract, so a pledge is rarely required for leasing.
Transparent conditions and flexible approach to charting
The rate for leasing and credit differs slightly, however, interest in the leasing agreement is accrued according to a simple scheme, assuming the same amount of monthly remuneration or a differentiated scheme. The lessee always sees the final payment schedule, may ask for a delay in this schedule.
A loan is a completely different matter, here an additional one-time commission may be hidden behind a small percentage. To the rate operated by loan officers, may be added:
- insurance of the subject of the contract, the risks of the borrower, the life and working capacity of the individual entrepreneur, etc., these payments will amount to 1-2% of the loan amount per month;
- a one-time commission for granting a loan, which is included in the total amount and is repaid with the "body" of the loan.
In the contract with the leasing company, you can stipulate deferrals for monthly payments and adjust their size if the company's work brings seasonal income.
For a bank, this approach is practically impossible.
Comprehensive service
The issuance of a loan implies only payment for the goods to the seller and insurance. Lessors also offer to include in the contract not only the subject of the lease, but also its maintenance. This is again related to the fact that Insurance Company usually specializes in working with the subject of leasing and has an agreement not only with the supplier, but also with service companies, has the opportunity to receive discounts from them.
For example, car leasing may include maintenance, insurance, fuel costs, taxes, and other expenses. The advantage is that all costs are evenly distributed over the duration of the contract, saving the recipient of services from large one-time payments.
If the company rents a fleet of vehicles, the leasing company can bear the cost of maintaining the vehicle and its smooth operation.
Accelerated depreciation and reduced income tax
Depreciation period for freight and specialized vehicles with an engine capacity of more than 3.5 liters under leasing in comparison with the conditions standard programs lending is reduced from 5-7 years to 21 months. and 7-10 years up to 29 months. respectively.
The special depreciation rate should not exceed 3. Monthly lease payments are included in the cost group, which means a reduction in income tax. Leasing contributions are included in the cost of production, and therefore quickly pay off. At the end of the contract, the leased asset is redeemed at a low cost due to accelerated depreciation rates.
As for the loan, the cost of its repayment is partially covered by the depreciation charge. Unlike leasing, loan payments cannot be fully attributed to costs, part of the interest is transferred to profit. This amount is calculated as the difference between the bank interest and the refinancing rate of the Central Bank of the Russian Federation, multiplied by the maximum coefficient of 1.8 (0.8 in foreign currency).
Payment of VAT on leasing - tax optimization on DOS
Legislation on leasing allows you to take incoming VAT for offset on a monthly basis as payments are made under the leasing agreement, while the loan agreement - only at the end, when the item is placed on the organization's balance sheet.
The main difference also lies in the fact that the interest on the loan is not subject to VAT, which means that they cannot be accepted for offset when paying VAT by the organization. While with a long-term loan or leasing, interest will make up a very significant part of the entire transaction amount. This is a very important economic advantage of leasing for a VAT payer.
Discounts from the supplier
Credit programs do not provide discounts on payment for goods for entrepreneurs and organizations; promotional offers are available only to individuals.
Leasing companies can offer equipment or cars for special offer. This is because such organizations often purchase products directly from the supplier in bulk, that is, at a reduced price. In turn, the lessor can rent it out on favorable terms and not be left in the red.
The most striking example is leasing with zero appreciation, that is, after the expiration of the contract, the client reaches the retail price of the subject of the contract, despite debt financing. Most often, this method is used in car leasing, as a result, after several years of using the vehicle, the lessee pays the amount of a new car in the cabin for the entire period.
Disadvantages of leasing
Funding cost
Since long-term leases are not free for the leasing company itself, and lessors are known to attract debt financing themselves, the average cost of financing for leasing companies is higher than the lending rate for a bank. Which, however, is usually compensated by discounts from suppliers, tax benefits, as well as an increase in the term of the contract.
Calculation of VAT on the simplified tax system
VAT is levied on lease payments in full. If an enterprise operates under a simplified taxation system and does not pay VAT, this tax as part of leasing payments increases the amount of expenses for paying leasing obligations. If the taxation system of the lessee provides for the payment of VAT, the disadvantage is canceled, but, on the contrary, becomes a tax optimization.
The subject of leasing is the property of the leasing company
The conclusion of a leasing agreement means only the transfer of its object for temporary use to the client, while it remains the property of the lessor. The leased property can be operated in full mode, however, untimely payment of lease payments and delays without agreement with the lessor can lead to its withdrawal.
The company that owns the rights to the property has the right to take away the subject matter of the contract without judgment in connection with a gross violation of the terms of the contract and operation.
Both leasing and credit are applicable in contemporary practice companies. To make the right choice, carefully study the offer market, ask questions, make a comparative calculation and attract competent specialists.
An organization that is faced with the need to acquire high-value assets often handles this issue in different ways. Let's try to figure out what is actually more profitable for the company - to take a loan and immediately buy necessary equipment or premises, or take it all on a long-term lease, possibly with the right to purchase later.
What is a loan?
A bank loan is targeted financing by a borrower's credit institution. Funds are issued for a specific purpose, for example, for the acquisition of an asset. Loan funds are often issued on collateral, since in the case of a loan to a legal entity for the acquisition of fixed assets, we are talking about large amounts.
Depending on the chosen scheme, the repayment of such a loan occurs either in equal installments at equal intervals of time, or at the end of the term in one amount, or in unequal amounts at intervals established by the agreement.
What is leasing?
Leasing is a financial service, the essence of which is special lending when a company acquires expensive fixed assets. This is a lease established for a long time, with the right to subsequently buy out the leased property.
A leasing agreement can be concluded on different terms.
The Lessor buys from the Seller the property specified by the Lessee for its subsequent lease to the latter. The seller and the specific model or type of property can be chosen by both the Lessee and the Lessor.
The contract may be concluded for a period comparable to the useful life of the object. In this case, by the end of the term, the value of the asset approaches zero, and the Lessee receives the object at no additional cost.
The term of the contract may be significantly shorter than the useful life of the object. In this case, upon expiration of the term of the agreement, the object can be transferred back to the Lessor for its subsequent lease, or the Lessee can redeem the asset at its residual value.
The lease agreement may contain provisions for the maintenance of the provided object, placing this responsibility on either the Lessee or the Lessor.
Leasing or credit: what is better and more profitable?
There is usually no single answer to this question. To solve the dilemma, many factors must be taken into account: the size of the business, the specifics of the company’s activities, and even the general economic environment in the country. Most often, however, experts tend to believe that leasing is cheaper for an enterprise than a loan.
Leasing is more affordable - leasing companies approach their clients with a less strict measure than credit institutions. It is often possible to conclude a leasing agreement without collateral and the fulfillment of special stringent requirements.
A leasing agreement is concluded for a much longer period than a loan agreement. Yes, and almost any repayment scheme can be developed - taking into account the characteristics of the company's business, its seasonality and other factors. All this makes it possible to simplify the procedure for paying lease payments.
When leasing, the company does not incur additional costs associated with the delivery of equipment, payment of customs duties, insurance of the object. These costs are covered by the Lessor. However, this argument is not always justified, because the company that provides equipment for leasing, most likely, invests all additional expenses in your lease payments.
And one more economic argument in favor of leasing - leasing obligations do not affect the value of indicators characterizing the financial well-being of the company, since only current payment debt is formed in its balance sheet.
Thus, in practice, leasing is often more profitable than a loan. However, each case should be considered separately, because each company is unique! Therefore, before final choice consult an experienced financier who will calculate possible options and help you find the most profitable and best for your business.
For a potential car buyer, the natural desire to save money turns into doubts about the choice of the form of purchase. Before buying, you need to understand the real terms of installment payments, figure out why leasing is more profitable than a car loan, and calculate the amount of overpayments.
Benefits of car leasing for commercial vehicles
When applied to motor transport, the term leasing means a long-term financial lease of a car (cars, commercial models), in which it is possible to buy or return the car. This form of use of fixed assets of production is popular in international practice and is encouraged by all countries at the state level.
Why are preferential conditions created for financial lease? It is more profitable for the state to reduce taxes to encourage the development of enterprises, upgrade equipment, than to receive momentary receipts of funds. In the Russian Federation, laws and by-laws support leasing with VAT refunds, no taxes on profits, property, accelerated depreciation.
Long-term lease is also convenient for production workers. Car leasing can be compared to a horse collar. Interest payments "put pressure on the neck" of the trucking company, but help to carry a much larger load, make a profit, reduce costs.
In Russia, the main benefits from car leasing are received by legal entities. By concluding a leasing agreement with acceptable rates of appreciation, state-owned enterprises, transport companies, taxi services use:
- working capital savings;
- regular replacement of the fleet;
- minimum initial contributions;
- optimization of taxation;
- accelerated depreciation.
It should be noted that leasing benefits apply only to firms operating under common system paying taxes. For motorists using taxation of the simplified tax system, UTII, optimization of taxation, reduction of income tax is not possible.
A simple calculation of possible profits and leasing costs answers the question why leasing is in demand. A commercial vehicle can earn up to one hundred percent of its value in a year, while car leasing payments are 6-10 per annum. Having returned commercial vehicles to the financial structure after the end of the leasing agreement, the transport company gets the opportunity to renew the fleet by concluding a new agreement.
An important advantage of car leasing is the ability to choose a used car, which reduces leasing payments. On the other hand, early termination of the lease agreement is impossible. Therefore, having chosen an unsuccessful model of a truck, minibus, the company is forced to incur losses. Attempts to stop payments ahead of schedule are thwarted by significant fines, which are included in the contract by the lessor.
For the effectiveness of car leasing, a transport company is required to load commercial vehicles to the maximum, operate it intensively (arrange shift work), ensure Maintenance reducing downtime. The cost of commercial vehicles must be calculated without exceeding possible income.
Restrictions on leasing relationships are individual for various structures. Some banks, leasing companies put forward requirements for the period of operation of the enterprise, a positive balance. Other structures provide leasing even to newly formed, loss-making firms, insuring themselves against fraud with a guarantee of a solid production company, financial institution.
At the conclusion of a leasing agreement key moments that require careful analysis are the validity period (a long-term financial lease is preferable), the amount of the advance payment, the percentage of appreciation in the cost, the payment schedule, and the determination of the residual value of the car.
Credit or leasing for the purchase of personal vehicles?
Both forms of financing, by increasing the price of a car, allow you to stretch payments over time. Encouraging the domestic manufacturer, the legislation of the Russian Federation actually allowed car leasing of personal vehicles, although in world practice financial leasing does not apply to consumer goods.
Car leasing is more profitable for regular replacement of expensive cars. For three years, the amount of payments does not cover the entire cost of the car. The return allows you to acquire a new model without tangible financial losses. In terms of total costs, the operation is comparable to buying a new car and selling it three years later, but does not require a one-time payment of the entire amount.
For budget models, car leasing is less effective. Leasing company agreements are beneficial only if the residual value of the car is high, otherwise the return does not make sense. At the same time, only car leasing allows to an individual long-term rental of several cars. According to the terms of car maintenance, purchase of insurance, maintenance, repairs, lending and car leasing are practically the same.
Financial differences in lending, long-term lease
Financial structures do not work at a loss, so you have to pay an increased price for a car. For overpayment percentages, leasing companies use the term " rise in price", which emphasizes the difference from lending rates, but does not reduce their size. For industrial leasing in the Western world, rates do not exceed 5% per annum.
In Russia, personal and commercial leasing rates are almost the same. Until recently, car leasing offered a rise in price of 10-20% per annum, and the loan operated interest rates in 5-8%. Now the conditions for concluding credit and leasing agreements are almost identical.
For banks, the minimum percentage of lending is a seven percent rate. Some leasing companies offer even better conditions - 6% price increase. With both methods of financing, a pledge is not needed, it is a loaned, leasing car. Although credit relations do not allow the return of a car, banks successfully neutralize this advantage of car leasing by lending to trade-in programs. Such a program, used by many car dealerships, allows you to exchange an old car for a new model.
Difficulties in documenting the transaction
Joining two segments financial market It is also expressed in the standardization of the necessary documents for obtaining a loan, car leasing. For a loan, as a rule, you must provide:
- passport (other certifying documents), tax number;
- income statement (tax declaration);
- a copy of the work book;
- additional documents (consent of the spouse, guarantees).
The same documentation is requested by leasing companies, and the time of the decision to approve the contract does not differ. Both forms of financing expose individuals to restrictions on age, minimum income.
Providing car leasing to the unemployed, pensioners, non-working disabled people is not formally prohibited (which is declared by advertising materials), but it is hardly feasible in practice.
Disadvantages of lending, financial lease for owners of personal cars
The leasing agreement leaves the owner of the car with a financial structure (until the residual value is paid). The owner of the car can at any time check its technical condition, which is not possible when lending. Financial lease, credit prohibit the sale of a car, placing it as a pledge. With car leasing, the car cannot be subleased. Travel abroad, overhaul the tenant must coordinate the car with the lessee.
It is obligatory to obtain permission from the owner for all significant operations (modification, tuning, repainting). With a loan, there are no such restrictions. Debts on car leasing, credit are punishable by the seizure of the car, but the creditor needs a court decision, without which the lessee manages.
It is impossible to unequivocally answer the question of what is more profitable - buying on credit or car leasing. The indisputable advantages of financial lease for commercial use are leveled when choosing an unsuccessful car model, low load. It is better to buy a budget model on credit. For temporary use of several cars, expensive models, leasing is better. Credit agreements, leasing relations require careful study in each case. Only by understanding the dangers, the "pitfalls" of the proposed agreement, you will be able to make a successful deal.
Maxim Pogorelov
Worked for 7 years in a bank. I have two higher education FINEC(St. Petersburg State University economics and finance) and SPbPU(St. Petersburg politechnical University Peter the Great).