Russia

Loan or lease - which is more profitable?

Leasing companies are willing to finance the purchase of cars, as in UAH and foreign currency. In this case, the exchange rates of leasing has dropped to the level of 9-10% per annum. When advantageous to take the car to a car loan, and when - in the lease?

Recently, much improved financial leasing vehicles for individuals. For example, reducing the size of the down payment of 30-40% to 20-25% of the cost of the machine, as well as increased the maximum term lease.

Most importantly, the reduced requirements for lessees. Some companies have even started to offer programs that do not require a certificate of income, while others eliminated limits on miles driven.

This is not surprising, since the risk is much less than the lessor of the lending bank. Before the end of the lease period the vehicle is owned by the lessor. It is therefore sufficient slightest breach of contract, to remove a car from the client without unnecessary talk and trial.

Lessor is responsible for registering their own car, insurance, repairs. Tenant only goes and makes payments. In addition, his riding subject to certain conditions, the breach of which threatens the fee.

If the tenant will be financial problems, and he is unable to make payments for the loans, you may permanently lose the opportunity to buy the car for the residual value. And it's not the worst. Tenant may lose everything that has made, including the initial payment. Even if the end of the lease only a matter of months, the machine can take away and drive to the parking lot because of the delay.

In the event of an accident the client also not exempt from the lease payments. The lessor will receive the insurance, make car repairs, return it to the client, who must pay as before. In case the client does not want to continue to use this machine, you will have to cancel the contract, losing money.

What good lease.

The main advantage - it's lease payments, which include the payment of commissions, insurance, technical assistance, motor vehicle tax, and more. Of the contract is much reduced cost client.

Also, if an accident happens on the road, the borrower have to call the bank to the insurer, and the lessee - the leasing company, which itself will insurance and repairs.

Lessee is in good companies can rely more on the service package, which includes technical support around the clock, fuel card for gasoline discounts and more.

Some companies offer not only financial, but also operational leasing. This means that at the end of the leasing contract the customer has the opportunity not only to buy the residual value of the car, but also to change it for a new one.

                                             

   There has been a reduction in the requirements for citizens in need of credit from banks and other financial institutions. This significantly extends the credit turnover in the country. Now possible to obtain a relatively small cash loan in just a few minutes, without the provision of information about income and guarantors. Until a few years ago, so it is easy to take a loan was impossible. Financial institutions, in order to reduce risk, require mandatory confirmation pay particular borrower and guarantors.

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