Auto leasing. What is car leasing for individuals?

2024 Author: Howard Calhoun | [email protected]. Last modified: 2023-12-17 10:16

In the event that it is not possible to purchase a car immediately for cash, individuals have to look for other ways to get what they want. Recently, the scheme of buying a car on lease is gaining popularity.

For a long time, the opportunity to use a leasing agreement existed only for legal entities. Today, this way of acquiring a car is becoming a reality for individuals as well.

Earlier, citizens could quickly get a car at their disposal only by buying or renting it. Now everyone has the opportunity to purchase a car on credit or leasing. The only difference is that under a loan agreement, a person uses his own car, and under a leasing agreement, a vehicle rented from the lessor company.

What is car leasing for individuals?

Let's take a closer look at this issue. To understand what car leasing for individuals is, you should refer to the legislation. Federal Law No. 194 “On Financial Leasing (Leasing)” offers the following definition: this is such a scheme in which the lessor assumes the obligation to buy into his own possessionthe property indicated by the lessee (in our case, a car) from the seller chosen by him, as well as to provide this very property for possession and use for a previously agreed fee with the right of subsequent redemption. It is possible to indicate in the contract that the choice of the seller and the acquired property can be carried out by the lessor.

Thus, the leasing agreement is tripartite. But the main actors between whom long-term relationships arise are the lessor and the lessee. Previously, such an agreement was popular with legal entities and individual entrepreneurs who used it to make a profit while renting a vehicle. Now it has become convenient for individuals to use it.

Pros of leasing for individuals

Purchasing a car on lease for individuals has a number of advantages compared to other forms of purchase with deferred payment. Among the main positives are:

• more loyal than with car loans, requirements for the borrower, often the credit history is not checked;
• requires a minimum package of documents for registration;
• the lessor is responsible for passing the technical inspection of the car, its insurance, registration (including the corresponding costs);
• leasing companies are not interested in the credit history of the lessee;
• more loyal lending conditions, includingthe ability to receive a deferred payment or extend the contract if necessary;
• opportunity to abandon the car at any time.

Cons of buying a car on lease

In addition to the advantages of buying a car on lease, there are also disadvantages of such a scheme. Moreover, the cons of leasing a car of individuals are usually much more interested. After all, everyone wants to know what pitfalls can await with such a transaction. The disadvantages of leasing include the following:

1. An individual is not the owner of the car, but only uses it by proxy. The car in this case belongs to the lessor.
2. An individual who has leased a car does not have the opportunity to change anything in the vehicle in any way, to operate it at 100%. Under the contract, the lessor firm prohibits any actions to be applied to the pledged asset, such as painting, driving it abroad, etc. In addition, from time to time, the lessee will need to appear at the owner's office to inspect the car, as well as coordinate each action planned for the car.
3. In the event of an accident or driving problems, the leasing company has the right to apply pen alties.

It turns out that in some cases, taking a car loan may be preferable to buying a car on lease for individuals.

Requirements forlessee

There are a number of requirements for the lessee, which are presented in almost all companies that provide a car for leasing to individuals:

• to draw up a contract, you must have a driver's license;
• requirement for Russian citizenship and registration;
• there must be a permanent place of work and seniority, respectively, and a steady income;
• Preferred age of an individual is 20-60 years old.

The simplest requirement when concluding a leasing agreement will be the provision of a passport of a citizen of the Russian Federation and a driver's license. The certificate of permanent income is quite reasonable, since the lessor needs to be sure that he will receive the amount due to him. But the latter is insured against non-payment by the fact that the property belongs to him completely, up to the final settlement. Therefore, if payments stop coming, the car will be returned to the lessor, and the funds paid before will be taken into account under the contract as payment for the lease.

Contract conditions

Depending on the company with which cooperation is carried out, the conditions under which a car leasing agreement is drawn up with an individual may vary. However, there are a number of points that are always taken into account.

Payment procedure

One of the important sections that everyone is interested in in a leasing agreement is the payment procedure and the terms of paymentpayments. All schedules and conditions are determined by the leasing company itself, and it is they who decide what will be the terms of leasing for individuals for a car.

Most often, the time to buy a car is given from two to five years. Naturally, the longer the term, the lower the monthly payment. A schedule is agreed between the parties, according to which the lessee undertakes to pay the amount due.

Also, the contract indicates the possibility of early redemption of the car. This procedure will help save some money. You should be careful when signing documents: often the lessor indicates in them pen alties for early repayment.

Prepayment

The contract sets the prepayment amount, which can vary from 0% to 50%. Making such a payment is beneficial due to the fact that the more the lessee pays in advance, the less he will subsequently have to pay every month. The minimum prepayment is beneficial for those who have little money to buy a car.

In addition to those mentioned above, there are other essential terms of the contract:

• order of receipt of the car;
• how will the checks of the car take place, the maintenance schedule is negotiated;
• pen alties for non-compliance with the terms of the contract;
• car insurance procedure.

Before leasing a car, individuals should carefully study the terms of the contract. If you disagree with some points of the document, you should immediately discuss them.

Choosing a lessor

Some things should be observedprecautions when choosing a company for leasing a car. It is important to responsibly approach the verification of the company with which the contract will be concluded.

The lessor must have a certain level of trustworthiness and have been in the market for some time. If such a company is part of a large holding, this is an undeniable advantage.

A reliable organization has some list of supplier companies with which it works. It must also provide leasing services to individuals and have prices for its services freely available.

To understand whether a deal is profitable, it is important not only to know what car leasing for individuals is, but also to choose the right lessor. To this end, you should collect the maximum amount of information about companies providing such a service.

Car leasing in Minsk for individuals provides a huge number of organizations. How not to make a mistake with the choice, not to stumble upon scammers? What to look out for?

There are several rules that will help you choose a reliable lessor:

1. A company's experience can be judged by how long it has been in the market. It is this period that makes it possible to judge that the lessor is reliable enough and is not a one-day firm.
2. An organization's website is a sign of seriousness. In this case, it is worth carefully studying the resource. It is desirable that there be not only information about the organization, but alsouseful related articles, pre-calculator.
3. It is important to check the contacts for communication with the lessor. It is desirable that there is a possibility of a round-the-clock consultation. In the future, when an unusual situation arises, this can be very useful.
4. Before the conclusion of the contract, the lessee must be provided with all the necessary information (for example, a payment schedule), explain all incomprehensible points. Without fail, the client must be told where and under what conditions the car will be serviced.
5. After choosing the preferred lessor company, the buyer should study reviews about it on the Internet. But don't blindly believe any of them. Very often, reviews are written to order by the organization itself or its competitors. Usually truthful opinions are written in simple language, without abstruseness, with a specific description of the situation.

Design steps

The procedure for leasing cars for individuals usually includes the following steps:

1. Car selection in progress.
2. The lessee submits an application to the lessor's company. At the same time, applications can be submitted to several companies.
3. Companies give their answer to the application with the calculation of the cost and payment schedule. That is, they make their offer on a specific occasion. The lessee at this stage has the opportunity to choose the prices and terms provided.
4. When a positive decision is received, an individual visits the company's office to complete the transaction.
5. The office regulates everythingdisagreement, a final version of the payment schedule and the amount of payments is being prepared.
6. Prepayment is due. The funds are transferred to the seller's account.
7. The car is registered in the ownership of the leasing company and transferred to the use of an individual.

Is car leasing profitable for individuals?

Purchasing a car on lease is very beneficial and convenient for citizens who, for various reasons, do not want to appear in various documents as the owner of the vehicle. There may be several reasons for this. For example, in order not to divide it during a divorce or in order to hide property from bailiffs.

Many leasing companies have partners in expensive car dealerships. Such salons provide their customers with pleasant discounts and bonuses.

If a citizen is going to lease a used car, then there are some special moments. Of course, this type of car is much cheaper and the age of operation does not exceed 5-7 years. All maintenance, as in the case of a new car, is carried out at the expense of the lessor. And this is a big plus, since the lessee does not have to worry about how to replace this or that part.

Due to the high cost of leasing a truck for individuals, it is also extremely profitable to issue it.

Leasing is also convenient for those who are used to regularchange cars. At the end of the existing payments under the leasing agreement, the car can either remain in the full possession of the lessor, or become the property of the lessee. A lease agreement, unlike a loan agreement, can be terminated much faster and easier. A citizen gains the ability to change cars more often without wasting time on resale.

Having carefully studied what car leasing for individuals is and what are its features, everyone should draw conclusions for themselves. The most convenient way to purchase a car depends on the specific situation and personal preferences of the consumer. Moreover, everyone can identify the advantages and disadvantages of such a scheme, which will manifest themselves precisely in his situation. It turns out that it is up to the consumer to decide whether to issue a lease or not. We note one thing: the existence of such methods of acquiring a car has helped many, and more than once.