•   Wednesday, August 17, 2022

Leased car: a good idea for private individuals?

There is a widespread opinion that in order to lease a car, you need to run a business. This was the case for many years, but nowadays it is possible to use not only classic but also consumer leasing.

What is consumer leasing?

Consumer leasing is not much different from classic leasing. The difference concerns the recipient of the service, which in this case is a natural person and not a company. Besides, everything looks the same - the customer immediately after signing the lease agreement acquires the right to use and undertakes to pay a certain amount in installments to the lessor. During the lease payment period, the lessor is the nominal owner of the car, whereas after the payment is made, the full rights are transferred to the user. This is similar to bank credit for a car, but there are some fundamental differences. First of all - the lessor, unlike the lender, will not require the counterparty to provide a certificate of income or purchase credit insurance, because the car itself will be the security here - if the lessee does not pay it back, it will lose the right to use it. The car is then usually put back on the market again.

Leasing may concern both new and used cars. Almost all forms of leasing are available to natural persons, except for example repayable leasing, where the lessee sells the nominal ownership of the car to the lessor for a specified amount and then, while retaining the right to use it, repays the lease payments.

Large selection of offers, equally high competition

The vast majority of leasing companies operating in our country offer leasing cars for private individuals. Competition is therefore almost as strong as in the case of leasing for companies, and just like there, if we know the market well and devote some time to analyzing the available offers, we will be able to find the most advantageous option.

The rules governing consumer leasing are similar to those in the case of classic leasing - here too, shorter contracts, despite higher installments, are generally more profitable for the lessee.

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