Car leasing: profitable or not?

A car is an essential attribute of modern life. It provides us with mobility, comfort and freedom. However, buying a car is a significant expense that is not always affordable for everyone. And it turns out that leasing a car is sometimes more profitable than buying one. Let us tell you why and provide our arguments.

The essence of car leasin

A car in the classical sense and from a financial point of view is a liability. Because the car that has left the showroom has depreciated by 10-20% and continues to lose value throughout its entire life. Accountants call this depreciation or wear and tear. And the more expensive the car, the greater its loss of value.

But at the same time, the car continues to be the main vehicle increasing human productivity and improving comfort. We don’t even realize how much we manage to do because we are mobile and free to move around. Imagine for a moment your life without a car or a smartphone. We immediately become limited in our movements and decisions.

Read also:
What is a car subscription and why is this service gaining popularity in Ukraine?

So what do you do? An alternative option is car leasing. Officially speaking, this is a financial transaction in which one party grants the other the right to use a vehicle for a certain period of time under the terms and conditions specified in the agreement. The lessor can be either a bank or a specialized company.

Why buy a car on lease?

What are the benefits of car leasing? There are five main arguments:

1. Quick access to transport

You can get the car in the shortest possible time: it can be yours within 1-2 hours from the moment you request it.

2. No need to pay the full price

You pay only the amount by which the car has depreciated (depreciation) over the period of your use. For example, if you lease a car that costs $20 thousand under an operating lease for three years, and after that it will cost $15 thousand, you pay only $5 thousand (the amount of loss of value) for the period of operation.

3. You do not overpay when buying a car

The main features of car leasing are that you don’t have to spend a large sum of money at once. In addition, you don’t have to pay the full amount for CASCO, tires, maintenance, etc. at once. An operating lease or rental includes all of these costs in the payments evenly.

4. Simple terms of receipt

To get a loan for a vehicle, you need to collect a lot of papers, confirm your income, and provide collateral. To take a car on an operating lease, it is enough to make one lease payment and a guarantee payment (equal to the sum of 2 to 5 lease payments).

5. All expenses are included in monthly payments

This includes not only the interest on car leasing, but also all the main expenses associated with the purchase and operation. This includes the payment of all taxes, including the pension fund, as well as tires with replacement in winter and summer seasons, all scheduled maintenance (M1, M2, M3, etc.), and CASCO with zero deductible.

Benefits of buying a car on lease

Thus, vehicle leasing is beneficial in the following cases:

• If you need to become mobile quickly.
• If you do not want to pay the full cost of the car.
• If you don’t want to overpay when buying a car.
• If you find it difficult to get a loan to buy a car.
• If you want all operating costs to be included in your monthly payments.

Registration of a car on lease

This is a simple procedure: you only need to provide our company with basic documents. Car leasing interest and other conditions will be set on an individual basis. They depend primarily on the type of car and the term of the agreement. More information about the operational leasing service can be found on the service webpage.