Since the beginning of the nineties, such phenomena as buying a car on lease and on credit have become more widespread in the post-Soviet space. These services look very useful and timely for Russians until now, since our country has not yet reached the level of development so that everyone can afford to pay for the purchase right away.
At the same time, questions often arise, which procedure to choose, what is more profitable and what is the difference between leasing and credit.
Leasing - This is a contractual procedure between the client and the leasing company, in which the latter undertakes to purchase a car from a particular seller and transfer it for temporary use to the client with the right of subsequent redemption.
A car loan is a loan provided by a bank for the purchase of a car, which usually acts as a security for the transaction.
The main feature of leasing is that the terms of the transaction do not imply the transfer of the car into the ownership of the client. The car will be redeemed and acquired by the leasing company, and the client will only enter into temporary ownership. At the same time, he will be obliged to pay the funds under the transaction and interest in stages.
The loan in this case looks more pleasant for the consumer - the car becomes the property of the client, you just need to pay the bank on a monthly basis.
The terms for which the transactions are concluded also differ: leasing is usually concluded for a period of 3 years, and lending for the purchase of a car is about 5 years. At the same time, the interest rate on leasing is usually higher than on a loan.
In addition, in the case of leasing, income taxes are not levied on the payments made, as they are considered expenses of the company. Another feature is that there are no different bank commissions in leasing that are present in car loans.
- Leasing is a set of relations between a client and a leasing company, in which the leasing company acquires a car specified by the client and transfers it for use to the client with the right of subsequent redemption.
- A car loan is a targeted bank loan provided for the purchase of a new or used car.
- Leasing involves the transfer of a car for temporary use until the last payment is made.
- A loan involves the transfer of a car into the ownership of the client immediately after the conclusion of the transaction.
- The term of the loan usually exceeds the term of the lease.
- The interest rate on a loan is lower than on a lease.
- With a loan, payments are subject to income taxes and there are additional bank commissions.