Leasing - that with this form of financing only the use and not the entire purchase price has to be paid is well known. This is a great attraction for companies because the purchase would inflate the company's ownership, but the use can be deducted from tax as a cost. But more and more leasing contracts for cars are being concluded by private individuals today, even if companies still determine the business today.
But the situation changes quickly, among other things because of the practice, which came to us from the Anglo-American region, of buying company cars as a bonus for good performance or managerial staff. There is also some market potential in this; because the employee has to pay tax on the value of the car, not the company.
The employee often has to choose his car within a certain price range. Corporate customers rarely favor a particular automobile manufacturer. Depending on the intended use, different vehicles are purchased for the privileged or for commercial purposes. The vehicle fleet therefore consists - quite intentionally - of models from several makes. The leasing company does not care either, as long as it is not the financial subsidiary of a manufacturer.
The average leasing rate is around 237 euros
Business has picked up speed for all leasing companies in recent years. According to the Federal Association of German Leasing Companies (BDL), around 40 percent of all newly registered cars are currently leased in this country. In 2010 it was only 35 percent and in 2002 only 30 percent. The lion's share is still in the hands of traders, even if - according to a study by the online marketplace "Leasing.Markt.de" - leasing is becoming more and more important for private individuals. The study also shows that the monthly leasing rate that consumers spend on their vehicle averages 237 euros.
Leasing and buying: the differences
If you are considering paying leasing installments instead of paying in installments, you should know which criteria you have to keep in mind: What differences to purchase or to other rental systems should be considered? What is the ownership structure like? And how do you get rid of the vehicle?
When buying cash, it must be clear: The money can no longer earn interest for the buyer. In better interest rate phases than today, that can add up to a significant amount. In return, the cash payer has the chance, at least in theory, to negotiate better discounts than with leasing. The model for financing the purchase is quite simple: the buyer pays the car in installments, stuttering the amount agreed with the lender. After the agreed purchase price and interest have been paid in full, the car automatically becomes the property of the buyer.
The vehicle purchase can be financed directly through the car provider. The advantage here: vehicle and credit come from a single source. But the way to the house bank is usually not that far. Sometimes it is worth comparing interest rates.
When leasing, you don't pay to own the vehicle, but to use it. So it is a form of rental. As with the financing, a monthly rate is paid for the car. After the contract has expired, you return the car and do not have to worry about marketing the used car.
Because it can be so easy, leasing is a popular choice for customers who regularly renew their vehicle fleet. However, the leasing contracts differ from one another: With a residual value contract, the expected value of the vehicle is calculated at the beginning of the contract. If the car is worth less at the end of the contract, the difference must be made up. If a right of tender is agreed in the leasing contract, the lessee is obliged to buy the vehicle at the agreed residual value if the lessor so requests. The lessee, on the other hand, has no right of purchase if the lessor rejects the purchase.
What to watch out for: the risks
Another form of contract is leasing with an agreed mileage. In any case, you should check how much the additional kilometers cost. Often there is also an agreement on reduced mileage. But the reimbursement amount is in a blatant disproportion to the price for the extra kilometer.
Once the decision has been made in favor of a form of leasing, the question arises as to whether one simply leases or opts for full-service leasing. With full-service leasing, for example, modules such as maintenance and repair, tire replacement, vehicle registration and de-registration as well as vehicle tax and insurance can be booked. Of course, the monthly rate also increases.
But there is another trap that attracts new leasing customers. Advertising likes to lure with incredibly low monthly rates and likes to forget the reference to the down payment that the private lessee usually has to make. But the forecasts promise good growth rates for the market. Leasing will continue to be an attractive route to automobiles in the future. In the meantime, he has also been assigned the role of economic driver. This is supported by the fact that in addition to the leasing procedures described, more and more providers are developing creative forms between owning and using. (ampnet / uk)