Car Leasing – How It Became Effective In Recent Years?

Auto Leasing – kind of lease. In them, one party (the lessor) invests in the purchase of the property, and the other (the lessee) accepts the financial service and uses the purchased property. The subject of lease can be any non-consumable items (excluding land), including vehicles.

The mechanism of car leasing

Car Leasing – is the acquisition and transfer of vehicles for temporary possession and use for a fee based on an agreement between the lessor and the lessee. You want a car. Money for the purchase of no. You apply to the leasing company. Telling it what kind of car would like to have, and show some papers.

In contrast to the registration of the credit, a minimum package of documents. As a rule, this statement, passport and driving license. From a procedural point of view, leasing is much easier lending. Between you and the leasing company, the contract is concluded. From this point on you – the lessee. Car Leasing How It Became Effective In Recent Years

Ides of car leasing

There are two car-leasing scheme:

  1. Leasing with transfer of ownership. When the leasing period ends, you will be able to become full owner of the car, buy it from the lessor on the residual value.
  2. Leasing without transfer of ownership. When the leasing period ends, you will be able to return the car to the leasing company and choose another, signing a new contract.

Pros and cons of car leasing

Car leasing exempt from many troubles. For example, do not need to spend time searching for the seller and the design of the machine. Moreover, it is not the only benefit.


  • A more flexible payment schedule. As a rule, they are lower than payments on the loan.
  • Simplified procedure of collecting the documents and sign the agreement.
  • Ability to update the car every few years.


  • Auto leasing is in the ownership of the company. At the slightest problem with the payments, and the financial difficulties of the lessor, it may be deleted.
  • Car you cannot take it to the sublease.
  • Individuals do not have the tax incentives on car leasing.

On a note!

“Financial Statements of the household” – is a term that exists in the United States. That is, the budget is considered a private person as well as the company’s budget. In this connection, taking the car to the leasing, the citizen receives the same tax benefits as a businessperson.

Watch this video to learn more about car leasing:

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