In the case where 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 method of acquiring a car is becoming real for individuals.
Previously, 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 on lease. The only difference is that under a loan agreement a person uses his own car, and under a lease agreement - a vehicle rented from a lessor.
What is car leasing for individuals?
Let's look at this issue in more detail. To understand what car leasing is for individuals, you should consult the law. 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 the property indicated by the lessee (in our case, a car) from the seller chosen by him, and also provide this property in possession and use for a previously agreed fee with the right of subsequent redemption. The contract has the ability to indicate that the choice of seller and acquired property may be made by the lessor.
Thus, the lease 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 applied it with the aim of making a profit during the rental of a vehicle. Now it has become convenient for individuals to use this.
The benefits of leasing for individuals
Buying a car on lease for individuals is fraught with a number of advantages compared to other forms of acquisition with deferred payment. Among the main positive points are the following:
- more loyal than car loans requirements for the borrower, often the credit history is not checked;
- for registration requires a minimum package of documents;
- the vehicle is inspected, insured, and registered by the lessor (including the associated costs);
- leasing companies are not interested in the credit history of the lessee;
- more loyal lending conditions, including the ability to obtain a deferred payment or extend the contract if necessary;
- the ability to abandon the car at any time.
Cons of leasing a car
In addition to the advantages of buying a car on lease, there are also disadvantages to such a scheme. Moreover, the disadvantages of leasing a car to individuals are usually much more interesting. After all, everyone wants to know what pitfalls can await with such a transaction. The disadvantages of leasing include the following:
- An individual does not own a car, but only uses it by proxy. The car in this case belongs to the lessor.
- 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%. The lessor company under the contract prohibits applying to the pledge means any actions, such as painting, going abroad and so on. In addition, periodically, the lessee will need to appear to inspect the car in the office of its owner, as well as coordinate each action planned for the car.
- In the event of an accident or if there are problems with driving, the lessor company has the right to apply penalties.
It turns out that in some cases it may be preferable to take a car loan than to buy a car on lease for individuals.
Lessee Requirements
There are a number of requirements for the lessee, which are presented in almost all companies providing 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 should be a permanent place of work and seniority, respectively, and a steady income;
- the preferred age of an individual is 20-60 years.
The simplest requirement when concluding a leasing agreement will be to provide a passport of a citizen of the Russian Federation and a driver’s license. The certificate of permanent income is quite justified, since the lessor needs confidence 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 cease to be received, the car will be returned to the lessor, and the money paid before will be accounted for under the agreement as payment for the rental.
Terms of an agreement
Depending on the company with which cooperation is carried out, the conditions under which a car leasing agreement with an individual is drawn up may vary. Nevertheless, there are a number of points that are always taken into account.
Payment order
One of the important sections that everyone is interested in in a lease agreement is the payment procedure and payment deadlines. All schedules and conditions are determined by the leasing company itself, and it is she who decides what the leasing terms for individuals for the car will be.
Most often, the time to buy a car is given from two to five years. Naturally, the longer the period, the lower the monthly payment. A schedule is agreed between the parties, according to which the lessee agrees to pay the amount due.
The contract also indicates the possibility of early redemption of the car. This procedure will save some of the money. You should be careful when signing documents: often the lessor indicates fines for early cancellation in them.
Prepayment
The contract sets the amount of prepayment, which may vary from 0% to 50%. Making such a payment is advantageous because the lesser the depositor pays in advance, the less he will have to pay each month. The minimum prepayment is beneficial for those who have little money to buy a car.
In addition to the above, there are other essential terms of the contract :
- the procedure for receiving the car;
- how the car will be inspected, a maintenance schedule is specified;
- penalties for failure to comply with the terms of the contract;
- motor insurance procedure.
Before renting 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.
Lessor Choice
Some precautions should be taken when choosing a company to lease 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 reliability and work in the market for some time. If such a company is part of a large holding, this is an undoubted advantage.
A reliable organization has a list of suppliers that it works with. It should also provide leasing services for individuals and have prices for its services in the public domain.
To understand whether a deal is profitable, it is important not only to know what car leasing is for individuals, but also to choose the lessor correctly. To this end, the maximum amount of information about the companies providing such a service should be collected.
Leasing cars 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 pay attention to?
There are several rules that will help you choose a reliable lessor:
- The company's experience can be assessed by how long it has been in the market. It is this period that allows us to judge that the lessor is sufficiently reliable and is not a one-day company.
- The presence of a full website at the organization is a sign of serious intentions. In this case, you should carefully study the resource. It is desirable that there was not only information about the organization, but also useful articles on the topic, a preliminary calculation calculator.
- It is important to check the contacts for communication with the lessor. It is desirable that there is the possibility of round-the-clock consultation. In the future, if an unusual situation arises, this can be very useful.
- Prior to the conclusion of the contract, the lessee must provide all the necessary information (for example, payment schedule), explain all incomprehensible points. Without fail, the client should be told about where and on what conditions the car will be serviced.
- Having chosen the preferred company-lessor, the buyer should study reviews about it on the Internet. But do not blindly believe each of them. Very often, reviews are written to order of the organization itself or its competitors. Usually truthful opinions are written in simple language, without clarity, with a specific description of the situation.
Design steps
The procedure for registering cars for individuals for leasing usually involves the following steps:
- There is a choice of car.
- The lessee submits an application to the lessor's company. In this case, applications can be submitted to several companies.
- Companies give their answer to the application with the calculation of the cost and payment schedule. That is, they make their proposal for a specific case. The lessee at this stage has the opportunity to choose the prices and terms provided.
- Upon receipt of a positive decision, an individual visits the office of the company to complete the transaction.
- In the office, all disagreements are regulated, a final version of the payment schedule and the amount of payments is prepared.
- Prepayment is due. Cash is transferred to the seller’s account.
- The car is registered in the ownership of the leasing company and transferred to the use of an individual.
Is car leasing beneficial for individuals?
The purchase of 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 conceal 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 car that was already in use, then there are some special points. Of course, this type of car is much cheaper and does not exceed 5-7 years in terms of age. All maintenance, as is the case with a new car, is carried out at the expense of the lessor. And there is a big plus, as the lessee does not need to worry about how to replace a particular part.
Due to the high cost, a truck for leasing to individuals is also extremely advantageous.
Leasing is convenient for those who are used to regularly change cars. At the end of existing payments under the lease agreement, the machine may remain in the full possession of the lessor, and may become the property of the lessee. A lease agreement, unlike a loan agreement, can be terminated much faster and easier. A citizen gets the opportunity to change cars more often without spending time on resale.
Having carefully studied what car leasing is for individuals and what its features are, 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 itself in his situation. It turns out that it is up to the consumer to decide whether to issue leasing or not. We note one thing: the existence of such methods of acquiring a car helped many, and more than once.