Leasing vs buying a car
Administrator World Garage
Some to buy a new car is not enough just a little bit. But it often happens that" just a little bit " is the whole amount. When your own funds are not enough, but there is a need to update your personal car, you can choose one of the financing programs: take a loan to buy a car or use the alternative – to buy a car on lease.
For almost everyone, credit can be a real help. Some people, taught by bitter credit experience, equate this form of purchase to a trap. This is partly true, especially when your personal funds are only enough for the first payment. On the other hand, the loan can be a great "lifesaver" in cases where the purchase of the coveted is not enough "pathetic" 30-40%.
However, there is another way to purchase a car, which many people forget. Large banks and financial institutions in addition to the classic car loans offer car rental services. Leasing of cars in the modern world is considered the most convenient way to purchase a vehicle. It is worth saying that, in fact, leasing is a long-term lease of equipment, vehicle or real estate, providing for the possibility of their subsequent redemption.
The scheme of acquisition of a car leasing always seemed incomprehensible. The car is bought by the leasing company and is its property, and the client "rides" on it, paying lease payments within 1-5 years. And only after the client makes the last payment, he gets the right to buy the car at the residual "symbolic" value. On the other hand, the loan scheme looks much clearer and more transparent. The car from the very beginning is issued to the borrower and is his property, but to repay the loan is pledged to the Bank.
Experts note that the demand for leasing from our fellow citizens has been growing steadily lately. Often individuals turn to leasing companies, because they are more loyal to customers than banking institutions. Leasing companies individually consider applications for financing, lowering the rate for customers with a good credit history. To date, leasing services for individuals are actively offered by about six trustworthy companies.
However, it is worth remembering some nuances when applying to leasing companies. As we have already mentioned above, the full ownership of the vehicle under lease is transferred to the client only after full settlement with the company, while under the terms of the loan – the collateral belongs to the client after payment of the down payment. Under the terms of the lease, the customer is obliged not to exceed a fixed annual mileage, to be serviced and pass inspection at the stations specified by the leasing company. These requirements are more than justified. Since all lessors are interested in the presentation of the car, in case the client after a few years will return it in a "non-market" condition.
Another is not very pleasant for the client, the nuance of leasing is that if you delay at least a month payment, the lessor will take the car and break the contract, even without going to court. In the case of a loan, the customer can always sell the car and pay off the debt, and the difference to pick up. Another risk is currency. If the lease agreement is linked to the exchange rate, the client bears all risks in case of hryvnia devaluation (payments may increase).
But there is a second side of the coin, more pleasant. An important advantage of leasing is that the costs of vehicle registration, pension Fund fee and insurance are distributed in time and paid as part of the approved monthly payments. Under the terms of the loan all the above expenses the client must pay immediately.
Another important nuance-the relationship with insurers, if the leasing car gets into an accident. All administration of insurance claims takes over the leasing company. As a rule, the car is repaired before receiving insurance compensation. In addition, the client is spared the procedure of "red tape" for payments and "knocking out" money from the insurer. Also, the client is provided with round-the-clock technical support, and in case of a malfunction of the car, a temporary replacement of the vehicle is issued. The Bank does not provide such conditions.
Necessary list of documents for obtaining a financial leasing for physical persons:
- application form with consent to the processing of personal data;
- copy of passport;
- copy of identification code;
- certificate of income (sometimes may require a certificate of income of the borrower/spouse / guarantor);
- the certificate of registration of marriage;
- copy of spouse's passport;
- copy of spouse identification code;
- a copy of the driver's license.
Before you start talking about financing, ask to show the certificate of inclusion of the leasing company in the register of companies that have the right to provide leasing services.
Very carefully read the contract, and best of all show it to a competent and trusted lawyer. The contract must be typed in a readable font. Pay special attention to the point of unilateral change in the percentage of the rise in price.
Ask for a contract for the supply of equipment between the dealer and the leasing company. You are entitled to be included in the above agreement as a third party to the transaction.
Be sure to request the details of the company in which you applied. Very carefully check them on different databases (fiscal service, court decisions, Executive service). If you notice more lawsuits, where the leasing company you have chosen is the defendant – a reason to think.
Do not use the services of leasing brokers. In practice, the broker will recommend the company that paid him more (commissions). Do not be lazy, check all the information and documents yourself.
Do not really believe the reviews about the company on the Internet. The reason to think will be a situation where the company's website a large number of laudatory odes.
Before paying the advance payment You must have signed the original documents. Not be amiss to request the documents of the person who signed the documents on the part of the company, the right to sign.
Be sure to check with the Credit Bureau credit rating of the selected leasing company.
It would be useful to know whether the selected company had a default on the bonds and whether it has restructured the debt on loans and bonds. After all, in case of bankruptcy of your leasing company, there will be no less problems than with scammers.
Remember, refusal on any of the above points-a reason to think. That's your money. Trustworthy leasing companies have nothing to hide.