If you purchase a car is not enough money, the traditional way out – take the credit. Less well-known method – Car Financing. Externally, both versions are very similar: to make an initial contribution – to receive the keys to the liking of the car – and the ride. Of course have to make monthly payments. The difference between Auto Leasing is that the control has a strange car, rented from a company-seller at the time (usually – three years). And only when all payments will be made, the car becomes yours.
Sly interest
Most Car Lease companies working on the principle of “all inclusive”, independently solving problems of registration and insurance, as well as passing the inspection car. But if these services car auto loans car buyers pay one-time fee from his own pocket, then the lease they are included in monthly payments. And the monthly payments are known accrue interest. Unsubscribe from these services is almost impossible. The exception is perhaps that subsidiaries Auto Leasing structures of banks, which sometimes can pay insurance once. Actually managers of these banks sobetuyut exactly what to do. But these companies on the market is very small.
On average, car Car Financing is 13-16%, car loan is cheaper – 11.5 – 14.5%, in U.S. dollars.
Let’s count how much cost buying foreign cars costing $ 30 thousand for each of the schemes. The term auto loan will take equal to 3 years. It turns out that in the case of lending: in the $ 41-43 thousand in Auto Leasing the same car will cost more: $ 43-44,5 Thousands “Of course, car Car Lease will cost a bit more expensive than a car loan, even ceteris paribus – comments Olesya Momotyuk, director of Auto Leasing Optima Car Financing Sixt. – Just as if we are building a house yourself, then spend less money than they appeal to a specialized company for integrated services which should be paid. In addition, the lease for physical persons increase the cost of mandatory stamp duty paid for the notarization of a lease car for which lease is issued, – 1% of the contract.
One of the key benefits of Auto Leasing to auto loans is the ability to defer most of the payments at the end of the car loan period. For example, paying $ 10 thousand for the advance referred to have a foreign car worth $ 30 thousand, payment, for example, $ 7 thousand could be deferred until the last payment (for ransom). The remaining amount, with the inclusion of the cost of insurance, inspection, transportation charges, etc., distributed to 36 months (an average of $ 800 per month). Three years later, all these payments, together with the advance and redemption, will result in $ 46 thousand (USD 1.5 thousand more than in the case when the residual value is reduced to zero).
The advantage of this scheme is that the foreign car is all these three years to work and generate income of the lessee. And if the lease is not taken car, such as automotive equipment (the classic example – concrete mixer), then the scheme is obtained even more profitable.
The only thing that postponing such amount until final redemption-rather just simply not allowed: “a deferred balance” in most cases can not exceed 10-20% of the cost of cars (rare exceptions – 35%). If you have no money left for the last payment, the Car Lease company with you goodbye. Cars with the remains in the ownership of these structures.
Pluses unwilling to save
One of the most attractive aspects of Auto Leasing – image. Namely – the possibility of periodicity in the average once every three years to change a foreign car to another. But this option is clearly not for those who want to save. This scheme looks like this: to lease cars or redeemed tenant, and sold. At the expense of the proceeds remaining debt is extinguished, and the remaining difference (if of course it is) is credited as the first payment for a new car. Sell, in some cases, can only dealer (and that means that we need to use only certain technical center, not to exceed the rate of annual mileage, keep cars in good condition, etc.). In other cases, the Car Financing company does not sell, but leaves the car in your property, simply estimating its market value by subtracting remaining debt, but what difference shall be credited as advance payment for the purchased a new car. Naturally, that measure will be in their favor.