What is car leasing in simple words. What is leasing What do leasing companies do

It is no longer possible to imagine modern entrepreneurial activity without leasing. However, for many people this concept remains completely incomprehensible, so they turn to search engines with the question: what is leasing in simple terms?

Leasing- one of the varieties of financial services, which involves the transfer of property for a long-term lease with a further right to purchase or return it. Unlike a conventional lease, a leasing transaction involves not two, but three parties. Each of them has its own legal rights and responsibilities. The main legal norm that regulates this sphere of relations is the federal law No. 164-FZ "On financial lease (leasing)", effective since 1998.

Participants in leasing legal relations

Based Art. 4 No. 164-FZ The subjects of leasing are:

1. lessor- an individual or legal entity that acquires certain property and provides it to the lessee on the basis of the requirements specified in the leasing agreement.
2. Lessee- an individual or legal entity accepting the object of the contract for temporary possession and use at an agreed cost. Most often, various companies engaged in commercial activities act in this role.
3. Salesman- an individual or legal entity that is obliged to transfer the property of one of the parties to the transaction on the basis of the requirements of the contract of sale. The law allows this entity to play the role of a lessee within the framework of one legal relationship. As a rule, this subject is industrial enterprises, various dealers, real estate companies.

Subjects of leasing

Leasing companies

Many ordinary people are wondering: what are leasing companies? In simple words, these companies are key players on whose actions the state of the market depends. These include various enterprises, firms and organizations that are engaged in conducting leasing operations. Highly specialized companies, as a rule, work with one leasing object or a group of similar objects (for example, construction equipment). They have specialists in their staff who are engaged in maintaining the facility in a normal technical condition. Universal players deal with various items, often transferring their technical support to lessees. Along with leasing operations, such companies provide a wide range of other services:

• representative;
• advertising;
• marketing;
• consulting;
• intermediaries and others.

Reasons for the demand for leasing

The unstable development of the economy and the protracted crisis of the financial market close access to credit for many entrepreneurs. Against this background, there is an outflow of capital and a decrease in the investment attractiveness of individual enterprises and entire industries.

Under these conditions, leasing becomes almost the only possible technology for business development. Financial lease allows you to update the production base and expand fixed assets, and also ensures the introduction of innovative solutions in production.

In simple terms, leasing is an effective financial instrument that contains signs of long-term lease and lending.

What can be leased

As a rule, vehicles, industrial equipment, aircraft, special equipment, material assets and even entire enterprises become the subjects of leasing. The current legislation provides ample opportunities for choosing an object of financial lease, referring to this category all non-consumable items. However, it also imposes certain limitations. So, it will not be possible to draw up a leasing agreement in relation to:

• military property;
• products devoid of individual data (for example, VIN for cars or serial number for industrial equipment), as the law regulates the need for accurate identification of property;
• property withdrawn from circulation or having appropriate restrictions;
• land and other natural objects.

In addition, leasing companies may impose their own restrictions. Their list is individual and depends on the characteristics of the equipment itself and the policy of the company. Nevertheless There are a number of general parameters that lessors adhere to:

• low liquidity of leased items;
• country of manufacture and brand (for example, leasing companies basically do not work with used Chinese cars);
• the age of the subject of leasing (for example, for cars, most often in the range of up to 3-7 years);
• the lower limit of the transaction value is set individually and in different companies may differ by tens of millions of rubles;
• the location of the client company and its financial well-being.

The refusal to provide leasing services in one company is largely a consequence of its internal requirements, so it makes sense to turn to its competitors in the future.

Benefits of the service for the consumer

• allows you to purchase expensive assets without withdrawing large amounts of funds from circulation, as it does not require urgent processing of the entire amount of payments;
• reduces the risks of owning assets;
• significantly reduces the property tax due to the rapid depreciation of the leasing object;
• reduces the taxable base, since payments for leased property are considered production costs for the lessee;
• unlike a classic loan, it is more accessible to many entrepreneurs, since the subject of leasing, being liquid, also becomes a collateral instrument;
• a wide range of forms and types of security;
• guarantees high-quality technical and service support;
• forms a more flexible and convenient financial strategy for the parties, allowing them to develop an optimal payment scheme (for example, taking into account the seasonality of the business or after receiving a certain profit on leasing equipment);
• a high degree of guarantee against intruders and unreliable suppliers, since all sellers are pre-screened;
• possibility of free choice of supplier and terms of delivery of equipment.

Disadvantages of the service for the consumer

In addition to the undoubted advantages, financial lease has a number of typical disadvantages:

• legal complexity of the transaction;
• the total cost of acquiring a leased asset is more expensive than a regular purchase on credit;
• generates additional financial risks;
• making a mandatory prepayment, which can be 1/3 of the transaction value;
• the need to provide additional guarantees and collateral.

The mechanism for the implementation of the leasing operation

For a clearer understanding of how leasing works and what it is in simple terms, you can take a closer look at the standard scheme of this operation. A consumer who intends to draw up a leasing agreement selects a specific type and brand of the necessary equipment and enters into negotiations with the manufacturer on the terms of delivery, at the same time notifying him of the desire to purchase the object with the help of a leasing company. After discussing all the details, the buyer contacts the company and provides it with all the necessary information (data about the equipment, information about the enterprise and its solvency, and a number of others).

Leasing deal scheme

If approved, a leasing agreement is drawn up between the parties, and the manufacturer of the equipment is notified about it. Then the leasing company and the manufacturer enter into a sale and purchase transaction. After the manufacture of the necessary equipment, the buyer accepts it and receives it for use.

Until 2010, only corporate clients could draw up leasing agreements. Today, individuals can also take advantage of the service. When thinking about obtaining a car loan, it is necessary to consider the option of leasing a car - the offer has many undeniable advantages.

What is car leasing

In simple terms, car leasing is a kind of long-term lease with the possibility of further redemption of the vehicle.

An agreement is concluded between the future user of the car and the owner of the vehicle, according to the terms of which the lessor (organization providing the service) transfers, and the lessee (the natural or legal person who will use the car) accepts movable property. Payments in a certain amount will be made monthly or at other intervals agreed by the parties.

At the end of the contract, the movable object (this can be not only cars, but also trucks or even special equipment) is either returned back to the lessor, or finally redeemed by the lessee and becomes his property. In the first case, the leasing contract is called operational, in the second - financial.

During the term of the contract, all costs for servicing the vehicle are borne by the lessor. The user will not need to worry about maintenance, insurance, repairs and other issues. It is important to understand that the cost of these services may be included in the payment - the terms depend on the agreement of the parties.

Car leasing for individuals

The opportunity to purchase a vehicle on lease appeared for private clients in 2010 - before that, the option was not available.

But, according to statistics, only 3% of cars are bought through leasing deals. This is partly due to the fact that the mechanism is relatively new. Also, many customers are scared away that the car will not be registered as a property until a certain time or even at all.

Car leasing conditions for individuals may vary depending on the selected company. But the average typical leasing offer is as follows:

• required set of documents - passport and driver's license;
• initial payment - from 10%, when providing confirmation of financial condition, registration without prepayment is possible;
• term - from 6 months to 3 years;
• possible options at the end of the contract - redemption, exchange, extension or return;
• rise in price (interest for using the service, maintenance costs, insurance, etc.) - from 5% to 15%;
• early termination - possible after the period specified in the contract (usually for the 7th month);
• amount - up to 7 million rubles;
• insurance - registration of CASCO and OSAGO is mandatory, protection of life and health is connected at will;
• security deposit - from 10%, not always requested and returned at the end of the contract.

Leasing companies are quite loyal in their requirements for clients - it is enough to be an adult employed citizen of Russia. But in some firms there may be special conditions for concluding a contract - for example, an income of at least 15 thousand rubles or registration in the region where the contract was drawn up.

As a rule, GPS equipment will be installed on the car to track the location of the car.

A car registered in auto leasing by an individual cannot be used for commercial purposes, for example, for private transportation (for a taxi).

Car leasing for legal entities

For corporate purposes, leasing can be issued for cars, trucks, agricultural and special equipment, buses and other movable property.

Corporate auto leasing according to the scheme of its work is similar to the offer for individuals. Differences in the requirements for the recipient of the service, as well as in the list of required documents.

Conditions for obtaining a car on lease for legal entities

To consider an application in most leasing companies, it is required that the client's business has existed for at least 12 months and has made a profit that the company can document.

To apply, you need:

• financial documentation of the company - declarations, reports, certificates, statements and others;
• constituent information - the charter, the decision on creation, orders for the accountant and the general director, information on registration, certificate of the Unified State Register of Legal Entities, etc.;
• information about the founders, including copies of their passports.

The leasing company has the right to request other information, for example, project documentation for the implementation of which car leasing is issued.

In some cases, the guarantee of the founders and / or related companies is required.

Advantages and disadvantages of car leasing

Both for individuals and for organizations that plan to use the service, the following advantages are obvious:

• there is no need to pay the entire amount for the car at once - you can break the cost into contributions that are comfortable in terms of time and size;
• at the end of the contract, you can draw up a new agreement - it is not necessary to buy a vehicle, you can lease another new or used car;
• it is possible to issue without a down payment - an analogue of an advance payment can be a security deposit, which is returned to the client at the end of the contract;
• you can get a significant discount - for car dealerships and official dealers, large leasing companies are profitable corporate buyers, which allows you to purchase vehicles at a wholesale price or at a discount;
• state support for Russian cars - when purchasing domestic cars, you can count on a discount or a subsidy;
• a simple registration procedure and a minimum package of documents - leasing companies are often more loyal to the applicant than banks.

For legal entities There is one more advantage of car leasing - tax. The vehicle is not listed on the company's balance sheet, which gives the company the opportunity to optimize budget allocations, including income tax. Private users of the service also do not deduct funds for a vehicle, but the financial benefit for them from this is less tangible.

Along with the advantages, there are also disadvantages of car leasing. The most significant of them are:

• it is necessary to pay interest for the use of leasing;
• in some situations, a down payment will be required;
• at the end of the contract, the value of the vehicle due to interest and inflation will be higher than the original value.

Also, the disadvantage of the offer is that in case of violation of the terms of payment, the lessor can claim the car back.

Before deciding to conclude a leasing contract, it is necessary to evaluate not only the advantages and disadvantages of the service itself, but also compare it with a car loan - depending on the specific situation, both one program and another can be beneficial.

Leasing and credit - what is the difference and which is more profitable

To understand how to buy a car cheaper, you need to compare the features of a car loan and leasing. The main characteristics are indicated in the table.

What is being compared	Car leasing	car loan
Car owner	Leasing company, at the end of the contract it is possible to buy the vehicle	The buyer, but until the full repayment of the loan, the car is pledged to the bank
Service fee	From 5% to 15%, insurance fees and costs included in the payment	From 14%, car maintenance and insurance is paid separately
Insurance	Mandatory CASCO and OSAGO, optional life insurance is issued	Mandatory CASCO and OSAGO, life insurance is voluntary, but refusing it may increase the interest rate
Package of documents	2 documents are required from individuals, from organizations - a full package	Almost always, registration takes place according to the full package, concessions are possible for private borrowers with the condition of increasing the rate
Vehicle liability	lessor	Owner
Opportunity to buy a car cheaper	Yes, achieved through a leasing company discount from the dealer	Only on an individual basis
Vehicle use	There are restrictions, for example, a ban on working in a taxi	The client himself disposes of movable property
Tax incentives (for businesses)	Yes, property tax	No

From a financial point of view, leasing is more profitable. But before registration, it is necessary to assess how significant the restrictions on the use of the vehicle are in a particular situation.

Hello! In this article, we will talk about what leasing is and how to use it. In a difficult economic situation, when banks demand exorbitant interest on loans, and rent as a type of transaction is not suitable for a number of reasons, enterprises or individual entrepreneurs are increasingly turning to leasing companies. The goal is to purchase equipment, transport, real estate on favorable terms. What is leasing for individuals and legal entities? What are the types of leasing? What are the benefits of such a deal? You will learn about all this in this article!

Favorable offers for car leasing now at Europlan with government support!

What is leasing in simple words

Leasing It's the same rent. (Translated from English "lease" - "rent"). But there are a number of significant differences.

Let's look at the scheme with an example:

The enterprise or entrepreneur does not have enough funds to purchase equipment. You can take a loan with high interest, or you can ask to buy necessary equipment leasing company. She, in turn, considers the proposal, evaluates the profit for herself. If approved, the lessor leases the acquired property to the enterprise under a special agreement.

Under the terms of this agreement, the lessee pays the company every month a certain amount (leasing payments), as for rent. After a certain period, you can buy equipment, real estate or a car by paying the residual value.

As can be seen from the example, three parties are involved in the leasing process:

• Property recipient- a person (individual or legal), to whom the object of leasing is leased for some time, with the possibility of its full redemption;
• Leasing company– the party acquiring the equipment: real estate, vehicles, equipment or the whole enterprise.
• Salesman– the party that sells the above valuable property.

Sometimes two parties are enough if the owner of the property acts as a lessor. In many cases, you will need another party - the insurance company.

The purpose of leasing for the enterprise- expand production, modernize technologies, which will lead to an increase in profits.

The lessor, on the other hand, benefits from the difference between the market price of the property and its value after the leasing operation. The seller of equipment, real estate, vehicles gets the opportunity to quickly sell expensive equipment, real estate, vehicles, etc.

According to the law of the Russian Federation, it is possible to lease (broadcast) property:

• Automobile transport;
• Real estate;
• Equipment;
• Enterprises.

Some objects are prohibited, for which special conditions of use are applicable by law, for example, military items. Such property cannot be leased:

• Without an individual or serial number (for example, when the vehicle does not have a VIN);
• Withdrawn from circulation;
• Natural resources and land plots.

Leasing companies set their own limits. They depend on the policy of the lessor and on the items themselves. There are also parameters common to all for objects that are not provided for leasing:

• Having low liquidity;
• Unreliable manufacturer;
• A used item for a period of more than 5-7 years.

The basic rule is that all leasing items are purchased in order to use them in the process of any commercial business.

Types of leasing

In accordance with the terms and economic essence of the contracts, there are three main types of leasing:

• returnable;
• Operating;
• Financial.

There are also leasing of real estate, equipment, vehicles and others.

According to the degree of risk, leasing transactions are divided into three types:

1. Guaranteed– risks are distributed among several parties – guarantors of the transaction;
2. unsecured- the lessee does not provide any guarantees for the fulfillment of its obligations;
3. Partially secured- having an insurance contract.

Description of the main types of leasing

Return lease

This is a special kind of deal. In this case, the lessee and the seller of the property are one person. The enterprise concludes an agreement with a leasing company on the transfer of its property into ownership for a certain amount and immediately acts as a lessee. At the same time, the production process does not stop - the equipment is not withdrawn. The company received a large amount, which can immediately be used to increase profits or for other needs. At the same time, he pays small payments every month. Such a transaction looks like a loan secured by property, but there is no interest in the bank.

Leasing back is beneficial for businesses that need additional funds for development. After all, there is an opportunity to receive money from the leasing company and at the same time the equipment will not be lost, and the production process will continue.

But there is a significant downside. The special attention of tax services is riveted to transactions on leaseback. They may consider such agreements as one of the ways to avoid taxes. But if the transaction is carried out in accordance with all financial and legal rules, and the contract is justified economic feasibility, then the fiscal authorities will not have a basis for a fine.

The tax service compares the terms of leasing and a possible loan. If it turns out that a loan is more profitable for an entrepreneur, then the Federal Tax Service suspects tax evasion.

Here are the terms of transactions that attract the attention of fiscal authorities:

• The leaseback agreement is signed by two mutually dependent parties. By law, this is possible, but in practice the Federal Tax Service does not pay VAT refunds precisely for this reason;
• The parties to the transaction used promissory notes, checks and other non-cash methods for settlement;
• One of the parties to the agreement had previously been seen in the unfair payment of tax.

Operational leasing

This is a transaction in which the term of use of the property is much longer than the drawn up term of the contract. The rate is higher than in the case of financial leasing. As a matter of fact it is possible to draw a parallel with ordinary rent.

The leasing company bears full responsibility for the subject of the contract. In other words, repair, maintenance and insurance. The recipient of the leased asset does not bear any responsibility. All risks associated with the death or loss of the leased asset are borne by the company.

The recipient of the object of leasing may terminate the contract with the company if an unusable object has been presented.

At the end of the operating lease agreement, the lessee may:

• Change the object to another;
• Leave the property to the lessor;
• Conclude another contract;
• Buy property and become its owner.

Operating leasing has a positive effect on the dynamics production process. After all, the equipment is updated.

The concept of financial leasing

financial leasing – way to attract Money for certain purposes. The terms of use of the leased asset are equal to the terms of the contract. By the end date of the agreement, the value of the property is close to zero. More often the lessee wishes to receive such property in the property, especially by the end of the lease it costs practically nothing.

The main features and conditions of financial leasing:

• The lessor purchases property specifically for leasing it, and not for its own use;
• The buyer chooses the property and the seller;
• The seller is aware of the existence of a leasing agreement, but the subject of the agreement is delivered to the buyer, and he takes it into operation;
• The lessee sends all claims regarding the quality of equipment, machinery, transport to the seller, bypassing the lessor;
• In case of damage to the subject of leasing, it passes to the buyer after signing the act of acceptance and commissioning.

Stages of concluding a leasing transaction

Despite the fact that the process of obtaining an object for leasing is considered a simple transaction, you need to carefully consider all stages of its implementation.
Key steps to a successful leasing deal:

1. Choosing a leasing company . It is better to give preference to large organizations that are subsidiaries of well-known financial institutions. We advise you to use Europlan on favorable leasing terms.

2. Studying all the proposed terms of the contract . Before signing the contract, it is necessary to find out: the initial and monthly payment amount, the payment schedule, the conditions under which the transaction is terminated, as well as the characteristics of the transferred property.

3. Drawing up a contract . Before that, the leasing company may require the following documents from the client:

• statement of intent to lease a certain object;
• an extract from the bank on the turnover of the enterprise for the last time;
• financial statements for the last 4 months;
• copies of documents of the head of the business;
• agreement with the supplier;
• documents confirming the insurance of the leasing object.

The lessor may require other documents and papers - it depends on the type of transaction and the company itself.

4. Then comes the first installment . After this operation, the enterprise receives the object of the contract for use.

- one of the most profitable ways that allows the company to increase production without high costs, build new workshops, update technologies through the purchase of technical innovations.

You can purchase everything you need for the operational work of the office, computer equipment. In agriculture, buy new machines for harvesting, collecting milk, cutting meat. In the restaurant business, purchase the necessary equipment for trade. Such leasing is also beneficial for the woodworking, gas, and oil refining industries.

The main advantages of using equipment leasing :

• Allows the enterprise or individual entrepreneur to develop, even if they have part of the money to buy new equipment;
• Payments are evenly distributed over the months according to a personal schedule, there is no need to pay the entire cost at once;
• The objects of leasing are received for use immediately, and after signing the contract they can participate in the production process;
• Monthly payments are covered by profits that will come from the use of new equipment, workshops;
• Payments are related to cost, which results in a lower income tax base;
• Savings by reducing property tax payments. This is due to accelerated depreciation. After the term of the contract, it turns out that the object of leasing costs almost nothing.

Car leasing

Both a legal entity and an individual can buy a car on lease. It's comparatively the new kind transactions for the population of Russia, but for last years rapidly progressing in its distribution.

Let us examine in more detail the question of what is leasing for individuals. In fact, any citizen of the Russian Federation can purchase a car, as if for rent. One difference is that you can become the owner of the vehicle at the end of the contract.

The motorist gets the opportunity to use vehicles after the transaction is completed and the first installment is made. Such procedures can be drawn up not only by special leasing companies, but also by banks and car dealerships.

What is the procedure for leasing a car?

1. The client provides identification cards and a driver, fills out Required documents;
2. An agreement is concluded between the parties: the future car owner and the lessor. The document gives the right to use transport with its subsequent redemption. A contract of sale is also concluded between the seller (transport supplier) and the company (bank) that has assumed the obligations of the lessor;
3. The recipient of the car for rent pays the first 20-30% installment of the total cost under the contract;
4. The subject of leasing (car) must be insured under two packages: OSAGO and CASCO;
5. The leasing company assumes the costs and hassle of registering a car with the traffic police and carrying out maintenance;
6. After all the above points, the transport passes into the use of the lessee, but not into possession. The owner is a leasing company, which can be a car dealer, bank and other financial institution;
7. The car user pays monthly amounts, and after the expiration of the contract, the vehicle can be taken over. You can also exchange for a new car.

Advantages of car leasing

1. You can buy not only a car, but also trucks, special equipment;
2. It doesn't matter if a used car or new cars were purchased on lease from a dealership or from a private person;
3. The minimum package of documents for a leasing transaction;
4. The level of requirements for the client is lower than when applying for a loan;
5. The lease term is up to 5 years, after this period the client can become the owner, for this you need to pay the remaining amount;
6. You can return the object of leasing - a car ahead of schedule;
7. You can immediately use the car after the transaction.

Cons of car leasing

1. Interest for car leasing agreements is higher than for a loan, especially for vehicles of an average price category;
2. In case of violation of the leasing payment schedule, the car is withdrawn;
3. The car is not property and it cannot be rented out, used as collateral without the consent of the official owner - the leasing company;
4. For periodic inspection, you need to provide the car to the leasing company.

Before deciding on the method of purchasing a car, you need to carefully study all the factors, weigh all the pros and cons, find out all the profitable offers of banks.

Real estate leasing is a cross between a lease and a mortgage. The essence of the process is the same as with other types of leasing. The company buys the property chosen by the client. Then, the leasing organization leases this living space to him. The client is obliged to pay monthly amounts for the use of leasing.

Real estate leasing for individuals

An apartment on lease for the general population has not yet become widespread. Maybe the point is that people want to see real estate in their possession immediately, and not in 15-20 years. Psychologically, it is much calmer when the apartment becomes the property immediately, as, for example, with a mortgage.

When registering real estate on credit, the buyer gets the opportunity to use and own square meters, the right to dispose will come after the last payment. With leasing, a person has only one right - to use the living space. All other rights will come into force after the expiration of the contract and payment of the residual value.

Purchasing a house or apartment on lease has a number of other disadvantages. V:

• Most often, a mortgage agreement is cheaper than a leasing agreement;
• Two transactions are made: one of them is for the sale and purchase between the leasing company and the seller, the second is between the citizen and the leasing company. As a result, more funds are spent on clearance. These costs are most often borne by the person who wants to purchase an apartment.

What are the benefits of leasing real estate for individuals?

It's all about the reliability of the transaction for the parties to the contract. With a mortgage for a bank, there is a risk that the client will not fulfill all obligations. Then you will have to take additional measures that incur costs for the financial institution. Whereas the leasing company is already the owner of the living space and does not lose anything in the event of the client's insolvency. Therefore, she is more loyal to delays in payments and considers all options for payments that an individual offers her.

Leasing companies do not care about the credit history of her client. Therefore, this type of apartment acquisition is suitable for citizens who have been denied a bank loan.

The acquisition of housing on lease is also attractive to those people who do not want to cover their property and pay taxes on it. For example, this option can be considered if the couple is in an unstable relationship and one of the parties is afraid of losing part of the property during the division.

There are many scammers among real estate leasing companies, so an ordinary citizen should carefully choose an organization. It is best to pay attention to leasing companies that are subsidiaries of a large bank.

Real estate leasing for legal entities

The situation is different with the leasing of commercial real estate for persons engaged in entrepreneurial and financial activities. This type of transactions has existed for a long time and is in demand. This is primarily due to favorable taxation schemes.

Not putting real estate on the balance sheet is always beneficial for any enterprise, in particular for the following reasons:

• You can count on a refund of value added tax;
• Accounting classifies lease payments as expenses, thus profit is not underestimated and the corresponding tax is reduced;
• Property tax may not be paid at all - the property is not listed on the balance sheet of the enterprise and does not belong to it.

That is why the acquisition of square meters with the help of leasing is much more attractive for the enterprise than a commercial mortgage agreement.

Leasing or credit - which is more profitable

For clarity, we present a comparative table with the same comparative characteristics on loans and leasing.

Comparison of credit and leasing

Characteristics for comparison	Leasing	Credit
Who can use	legal entity, individual engaged in commercial activities (IP)	any natural or legal person
Who is the owner	during the term of the contract, the owner is the lessor, at any time he can withdraw the property	after the transaction, the owner of the acquired property is immediately the enterprise or individual entrepreneur
Payments	- monthly payments: — payment of the margin of the leasing company; - insurance premiums; — tax on leased property; – advance payment is 20-30% of the cost	- payments on the loan (interest on the loan, insurance); – payment for maintenance of a loan account, property valuation is possible; - there may be no initial payment
Past histories of property acquisition	it is not necessary to have any (positive, negative) history of leasing property	positive credit history
Depreciation	the possibility of applying accelerated depreciation (except for cars worth more than 300 thousand rubles and minibuses - more than 400 thousand rubles - a coefficient that reduces depreciation is applied for them)	normal depreciation plan
taxes
VAT	VAT is included in lease payments	Money received on credit is not subject to VAT. The tax imposed by the supplier can be deducted by the lessee after he acquires the property
Property tax	the property is on the balance sheet of the leasing company, therefore it cannot be subject to property tax. if the property is on the balance sheet of the enterprise, then the property tax is reduced due to the rapid depreciation provided for leasing	the property is immediately the property of the enterprise, which means that it is taxed

The advantage of leasing over a loan is not always obvious. Each specific case must be considered separately from all sides. Legal and financial assistance is indispensable.

On a specific example, we will analyze car leasing well-known brand. The conditions offer payments 30% less than for a loan. But there is one more point - in order to receive such a favorable offer after the term of the contract, the car must be returned to the seller. If you buy it out completely, then the overpayment will be higher than for the proposed loan.

Taxes and depreciation

When determining the income tax base, the enterprise (lessee) classifies lease payments as expenses. This is described in detail in article 264 of the Tax Code in paragraph 1 of subparagraph 10.

It is possible, under the terms of the contract, to attribute property to the balance sheet of the enterprise, then the amount of depreciation is deducted from the amount of expenses for leasing payments.

When the property is not on the balance sheet of the enterprise, then it is taken into account by the lessor. In this case, the cost of the object of the contract is deducted from the sum of all expenses for payments for leasing. According to the law, the income tax base does not take into account the costs of acquiring property subject to depreciation. This is the redemption value of the leased asset, and it is written off gradually with the help of depreciation.

There are cases when the amount of the redemption value is not clearly stated in the contract. Specialists of the Ministry of Finance in this case propose to include in the initial cost all amounts of payments on leasing. After the property rights are transferred to the enterprise, accrue payments as expenses through depreciation.

An enterprise or individual entrepreneur can challenge this position, because there is no mention of a redemption price in the law and the Tax Code. Article 264 of the Tax Code states that all lease payments are classified as other expenses. The exception is depreciation accrued by the enterprise.

There is also a special procedure for calculating the cost of depreciable property in leasing operations. This is indicated in article NK 257. The initial cost of property includes the cost of delivery, construction, acquisition, bringing to a state suitable for use. This means that for the parties to the leasing agreement, the initial cost of the leased asset will not differ.

It turns out that if the lessor fully repays the value of the property through depreciation, then by the end of the contract, he transfers the subject of the contract to the enterprise with zero residual value.

If the property is not fully depreciated, then it passes to the other party to the contract at the cost that will remain after depreciation is charged. This part will be written off as expenses from the enterprise through depreciation. Therefore, if the lessee accumulates the redemption value, then he will not be able to write it off, since depreciation is not charged on it.

It turns out that it is more profitable not to divide the lease payment, but to fully attribute it to other expenses.

Depreciation

Accelerated depreciation rates apply to property acquired on lease. In politics for tax accounting the company must specify the method of calculating depreciation.

Leasing payments include VAT, so in the future the company can offset it from the budget in accordance with Articles 171-172NK.

When buying on credit, the cost of VAT will be less than with a leasing transaction. This happens because in case of leasing, the base for calculating VAT includes not only the value of the property, but also the price for the services of the lessor.

Renting and leasing - similarities and differences

Leasing is just like renting from the outside. Leasing is often referred to as a finance lease. In fact, in both cases, the main subjects of the transaction are two clients. One needs a certain expensive item, but there is no whole amount to buy it. Another customer has the funds to purchase the item and can rent it at a premium for a profit.

However, this is only the outer side. In fact, these two operations have many differences.

The main difference is the ability to take into account equipment during leasing, both on the balance sheet of the leasing company and on the balance sheet of the enterprise. When renting, the object is shown on the off-balance accounts of the recipient of the object.

Differences and Similarities Between Leasing and Renting

Characteristics for comparison	Leasing	Rent
Timing	usually a long term deal. The term is equal to the useful use of the leased asset	provision of a leased item for a short period that is not related to its useful life
Ability to use land	not provided	Maybe
Redemption of the item at the end of the contract	Can	it is forbidden
Type of property right	use
Legal regulation	Chapter 34 of the Civil Code - "Rent"; Article 2 of the Federal Law	Chapter 34 of the Civil Code
Responsibility for the risk of accidental breakage, loss or damage to the subject of the transaction	direct responsibility on the lessee	tenant is not responsible
Providing documents confirming solvency	a comprehensive assessment of the enterprise for solvency is carried out	not required, only account details are required
Who chooses property	lessee (company)	landlord
Subject of the transaction and its quality	means new equipment	the object may be the property that was rented several times, defects and malfunctions are not excluded

Lease payment schedules

Regular payments on leased property can be regressive, seasonal, annuity.

Regressive installments mean that the monthly payment decreases with each subsequent payment. The same amount (fixed) is meant by annuity payments. As the name implies, seasonal payments depend on the season. Many businesses make a profit in a certain season, so a leasing company may consider special conditions payments.

What is subleasing

Often there are such cases: the lessee no longer needs the received property or he cannot use it. And then thoughts arise, but is it possible to rent out the object of leasing? This will be considered subleasing.

This type of transaction is legalized and at the same time an appropriate subleasing agreement is drawn up. Its participants are the new acquirer of the property - the subtenant, the former lessee who no longer needs the subject of the contract.

The lessor is an organization that owns the property, writes a written consent or a ban on the transaction.

Conclusion

Now you know what leasing is, types of leasing and how to lease a car, equipment, etc. If you have questions, ask in the comments below. And also read other articles on our website!

Small and medium businesses are the key to a healthy economy. But to start any business, you need start-up capital. There are a number of financial instruments for attracting these business funds, one of which is leasing. What is leasing in simple terms and how is it different from a regular loan?

Main Differences Between Leasing and Loan

When starting any business, one of the biggest challenges is sometimes the lack of financial resources. Regardless of the form of ownership and size of companies, owners may experience a shortage of equipment, special machinery, etc. There are many ways to solve these paths - attracting investors, renting, borrowing from a bank, etc. But one of the most relevant and popular ways is leasing.

Leasing is one of the forms of financial services that can be provided to both legal entities and individuals. With the help of this service, the necessary equipment, transport, machinery, etc. are purchased. in plain language This is a long-term lease with an option to purchase.

Leasing literally means “rent” in English, which explains the erroneous opinion of many that taking a lease means entering into a lease agreement.

These are not synonyms and are two completely different financial instruments.

Leasing is a type of financial service that involves the taking of property for use for a certain period of time with subsequent redemption.

In the West, this form of credit has long been very popular. In Russia, many entrepreneurs treat leasing with some skepticism, not fully understanding the essence of the service and its legal aspects.

According to statistics, about 30% of all cars in Europe are purchased on lease, about 30-40% on credit, and only 40% are purchased for cash. Why is leasing so popular?

Thus, we can distinguish the main differences between a loan and leasing:

• different rights of the parties to the property;
• property on credit can be used by the borrower at his own discretion (with the exception of a secured loan). When leasing, the client is obliged to use the property strictly for its intended purpose.
• property acquired on credit must be noted on the balance sheet and it is considered as an investment;
• Leased property is listed on the balance sheet of the lessor, which means that no tax is paid from it.

The widespread use of leasing lies in its tangible benefits in terms of paying taxes. In this regard, a distinction is made between fictitious and real leasing. At the same time, all parties to the transaction receive these benefits: the Buyer, the leasing company, and the Seller of the goods.

Video. Leasing or credit?

Technical features of leasing

Typically, there are three parties involved in leasing:

• The party that sells the property (the Seller).
• The recipient of the property.
• A leasing company that secures the transaction and in favor of which the property will be transferred in case of non-payment.

In this financial chain, the Lessor acts as an intermediary.

This company is the owner of the leasing agreement, and it is the company that buys the property from the Seller, transferring it to the Buyer.

Of course, such a company must have impressive

financial resources and often leasing companies are subsidiaries of large Sellers (automobile factories, equipment companies, etc.).

Also, in some cases, leasing companies can be subsidiaries of large well-known banks, only with a narrower specialization.

The key point in the entire leasing scheme is the fact that the property transferred to the lessee (Buyer) is not completely his property. It becomes his full property only if the loan is fully repaid.

In general, leasing is a rather complex economic concept. Since it includes a whole set of processes for investing financial resources.

The process of transferring property is carried out with the help of a transaction, which consists of a number of agreements between the three parties to the process.

The subject of the contract may be a building, a car, agricultural machinery, an enterprise, etc. Also, the land plot and other natural resources can be the object of the transaction, if this does not violate the law.

The leasing company is a key player, on whose actions the economic situation on the market often depends.

These players include various leasing companies conducting similar operations. All companies can be conditionally divided into 2 groups:

• highly specialized;
• universal.

Highly specialized leasing companies, as a rule, work with one type of property or a group of related products. They can only cooperate with private businesses that purchase agricultural or construction equipment.

But larger universal players carry out leasing operations with any type of property.

Along with leasing operations, they can provide additional services:

• consulting;
• advertising;
• marketing;
• intermediary, etc.

What is the reason for such popularity of leasing companies? Leasing or credit?

Financial market instability and low economic level in the country restricts access to loans for many entrepreneurs. This, in turn, further worsens the economic situation of the country, as there is an outflow of capital and a decrease in the investment attractiveness of some business areas.

For a healthy economy of the country, the constant functioning of enterprises, the attraction of new companies in various sectors of the economy is necessary. And it is the leasing companies that in this case have a great responsibility in terms of stabilizing the economic situation.

In an unstable economic situation, leasing is becoming one of the key technologies for business development.

Such a long-term lease with the possibility of subsequent purchase allows not only to purchase the necessary equipment or premises for production, but also to modernize the production capacity of the enterprise, expand the branch of companies, etc.

In this regard, leasing can be called a driving tool for economic development. Leasing, as a service, combines the attractiveness of long-term lease and credit.

The scheme of the leasing transaction

Despite all the legal subtleties and complexity of the procedure, the process of transferring property to leasing is quite simple.

1. The user (lessee) applies to the leasing company with an application for the acquisition of a certain type of property.
2. The leasing company reviews all necessary documents and assesses the liquidity of the property.
3. With a positive assessment and decision, the leasing company purchases property from the manufacturer (Seller).
4. The leasing company signs an agreement with the leasing recipient, according to which the user takes the goods on a long-term lease, gradually paying the company for it.

Forms of leasing

Depending on the number of participants in the scheme, there are:

• direct leasing;
• indirect.

With direct leasing, the transaction is bilateral and the lessor (Lender) is also a supplier of goods.

Accordingly, with indirect leasing, several intermediaries are involved in the transaction. As a rule, three parties are involved in the process. But in some cases, 4-5 parties can take part in the transaction, while multilateral agreements are concluded between them.

As mentioned above, with direct leasing, the Lender himself also acts as the Seller of the goods (sale and leaseback). In this case, the Seller transfers his property to a long-term lease with a subsequent purchase.

Separate leasing is also distinguished, which is a more complex form of indirect leasing.

As a rule, several parties are involved in the scheme of such projects, and we are talking about the implementation of large expensive objects. It can be expensive equipment for a factory, satellite stations, ships, etc.

A feature of this form of leasing is that the lessor pays only part of the property. For the rest (this may be 2/3 of the value of the property), he takes a loan from Creditors.

Thus, one contract is concluded between the Lessor and the Lender.

And between the Lessee and the Lessor is different, already about the transfer of property for temporary use with subsequent redemption.

With this form of transaction, the leasing company enjoys all tax benefits, which are calculated based on the full value of the property, but the borrower (in this case, the leasing company) is not liable to the Lender for repayment of the loan.

That part of the amount that he takes from the Lenders is a pledge, while the leasing company cedes to the Lender the right to receive part of the payments from the transaction to repay the loan.

Thus, the main part of the financial risks from the transaction lies with the creditors, and the property itself serves as collateral for the transaction. Today, most leasing operations are carried out according to the scheme of separate leasing, especially when it comes to large amounts.

Types of leasing operations

Also, leasing operations are classified according to the type of property transferred:

• leasing of movable property;
• real estate leasing.

The first group includes equipment, transport, machinery. To real estate - industrial buildings, structures.

Today, a new direction in leasing is emerging, which is characterized by the transfer for temporary use of equipment that was already in operation.

In this case, the suppliers are factories and enterprises that have machinery or equipment that is idle, but at the same time is in full technical order.

At the end of the contract, the equipment is returned to the owner. That is, in this case, we see leasing only in the form of a long-term lease without the right to purchase.

For the company, the benefits are obvious. It makes a profit from the operation of equipment that was idle anyway. For the recipient, this is an opportunity to receive equipment for temporary use at a price that is initially calculated not from the amount of new equipment, but from used equipment, which significantly reduces the cost of the transaction.

Classification of leasing according to the degree of cost recovery, leasing is divided into:

• deals with full payback;
• with incomplete.

Leasing with full payback involves the receipt of all profits and compensation of all costs by the lessor during the term of the contract. Incomplete compensation, accordingly, does not compensate for all the costs for the lessor that he incurred when concluding the transaction.

Depending on the terms of depreciation, a transaction with full and partial depreciation is distinguished. With full depreciation, we observe approximately the same terms of the contract and equipment depreciation according to technical standards. If incomplete, the period of the contract is shorter than the life of the property, and allows you to write off only part of its value.

Financial and operational leasing

Also share:

• financial leasing;
• operating lease.

Financial (capital) leasing is characterized by a long period of use of property, which can be 15 years or more.

As a rule, the long term coincides with the norms of the service life and the full depreciation period. At the same time, at the expense of payments, the lessor fully pays for its costs for the purchase of property.

This form of contract is characterized by the transfer of the full cost of equipment, already at its residual value at the end of the contract.

Operational leasing is characterized by a shorter term of the contract and, as a rule, the term of the contract ends earlier than the end of the standard service life of the equipment. Therefore, this option of the transaction is resorted to when transferring equipment with a high rate of obsolescence.

The characteristic features of this form of lease is the partial depreciation of the transferred property, which does not allow it to be fully recouped. In this case, the lessor is forced to repeatedly provide goods for temporary use to various lessees in order for a full payback to occur.

But, given the rapid obsolescence of such property, the lessor takes a certain risk. He may not be able to recover all the costs of acquiring the property, as demand for it may decrease over time. This causes the high cost of the transferred equipment and large payments.

Characteristic features of operational leasing are:

• multiple lease of property;
• short term of the lease agreement;
• the leasing company assumes all obligations for the maintenance of the property;
• excess of the standard service life over the term of the contract;
• the leasing company rents out equipment that it already has in stock, without purchasing it specifically for the recipient;
• high amount of payments (much higher compared to financial leasing);
• the risk of loss and damage to property lies with the lessor.

It is advisable to carry out such a variant of operations when the leasing company offers for rent already used property.

Or if the lessee is not sure about the term of the contract and that he will be able to regularly pay rent sufficient to fully repay most of the original value of the property.

Leasing classification by service volume

According to the volume and nature of service, experts distinguish:

• wet;
• net lease.

With pure leasing, the company provides only a leasing service, acquiring equipment and providing it for rent. Wherein Maintenance and all costs associated with depreciation are borne solely by the Buyer (lessee).

In wet leasing, the company that transfers the property provides the lessee with related services: insurance, repairs, etc. When it comes to complex equipment with unique technical specifications, then the leasing company can assume the costs and obligations for the purchase of imported raw materials, parts, staff training, etc.

Leasing transactions can be concluded with residents of one country and different ones. In the first option, it will be an internal lease. External (international) assumes that at least one of the subjects of the transaction will be a citizen (company) of another country.

International leasing is controlled by the law "On leasing" and the legislation of the Russian Federation. In this case, the transfer of property under this form of leasing must be carried out no later than 6 months from the moment the subject of the contract passes the customs border.

In turn, external leasing is divided into import and export. In case of export leasing, the resident of a foreign state is the lessee, and in the case of import leasing, the mortgagor.

Classification by type of lease payments

According to financial transactions that are carried out within a leasing transaction, there are:

• leasing with cash payment;
• with mixed payment;
• with compensation.

Leasing with a cash payment involves a standard payment scheme in cash. The company transfers equipment for long-term lease, and the client pays the monthly payment under the contract, transferring the amount to the account.

Back-to-back leasing involves paying for goods with services, raw materials, etc.

Mixed payment combines two forms: cash payment and compensation.

Classification of leasing by the term of the contract

There are three types of contract duration.

• long-term leasing - leasing (the contract is concluded for a period of more than three years);
• medium-term leasing - (the contract is concluded for a period of 1.5 years - 3 years;
• short-term leasing - (the contract is concluded for less than 1.5 years).

What is being leased?

Leasing objects can be conditionally divided into several groups:

• Transport group (cars, ships, railway cars, aircraft, etc.).
• Construction (cranes, scaffolding, concrete mixers, workshop equipment).
• Military property.
• Communication equipment (antennas, satellites).
• Agricultural equipment (tractors, harvesters).
• Real estate (buildings, workshops, warehouses).

In some cases, leasing companies may impose their own restrictions and establish their own list of property with which the company will work.

It depends on the size of the company, the scope of its activities and its own policy.

The peculiarity of the leasing agreement is the transfer of property to the full ownership of the lessee at the end of its validity. During the term of the contract, the lessor remains the formal owner of the property.

But there is also a standard set of requirements that any leasing company adheres to when considering an application:

• liquidity of the subject of leasing;
• year of issue;
• country and brand;
• the lower limit of the cost (each company is set individually);
• financial well-being of the lessee;
• the location of the lessee's company.

Having been refused by one leasing company, it always makes sense to make the same request to another, since this refusal can only be justified internal requirements leasing company.

Technical features of the leasing agreement

Whichever leasing option is made, the standard agreement contains the following provisions:

• exact description (technical) of the subject of leasing;
• scope of property rights;
• description of the procedure for the transfer of property;
• contract time;
• the procedure for balance accounting and technical maintenance of property;
• list of additional and related services;
• payment procedure and payment schedule;
• penalties.

Advantages and disadvantages of leasing for the consumer

Compared to a conventional bank loan, leasing has a number of advantages, opening up broad business opportunities.

This format of the agreement allows you to purchase expensive equipment with subsequent payment. Moreover, when compared with a bank loan, there is usually no need to make a deposit. The equipment itself is already collateral. At the same time, the subject of leasing is on the balance sheet of the lessor, which means that the company does not pay tax on it.

The disadvantages of this type of agreement include a high overpayment on payments (when compared with a bank loan) and the need for a down payment. This is not a mandatory requirement and some leasing companies do not require an upfront payment.

Leased equipment cannot be rented out, resold, etc. until the end of the contract.

Pros:

• the possibility of acquiring expensive equipment;
• the opportunity to start your own business or modernize it;
• long term lease;
• the possibility of gradual debt repayment without a one-time withdrawal of all financial assets of the enterprise from the business;
• reducing the risk for financial assets;
• minimum package of documents;
• the opportunity to participate in preferential subsidy programs;
• reduction of property tax due to rapid depreciation of the leasing object;
• guarantee of quality service maintenance of equipment;
• tax cuts (because the property acquired on lease is considered production costs for the lessee, which means that no tax is paid from it).
• more favorable terms interest rate compared to a bank loan;
• lack of strict regulations on payment (the parties agree on their own);
• higher approval rate compared to a regular bank loan.

Minuses:

• high final cost of property;
• the need for a down payment (25-30% of the total cost of the leased asset);
• additional insurance and collateral required;
• legal complex deal.

Video. Advantages and disadvantages of leasing

Conclusion

Comparing all the advantages and disadvantages of leasing, we can say that this form of financial relations is quite beneficial for all parties to the transaction. Leasing allows you to start your own business without start-up capital and at the same time gradually buy out equipment.

But, given the many subtleties and nuances of the leasing agreement, you should carefully compare the terms of the leasing agreement with a bank loan. In addition to the total amount of the overpayment, you need to pay attention to additional nuances (insurance payment, ownership of property, conditions for transferring it to full ownership, etc.).

Video. Leasing secrets for entrepreneurs

Modernization of the socio-economic sphere, as well as the introduction of new management systems, create a need for qualitatively new methods for updating the funds of enterprises.

In the context of the decline in credit and financial relations and the curtailment of state investments in the economy, there is a need for other types of injections into production area. That is why it is worth studying in detail the question of what leasing is, and understanding the principles by which it occurs.

Why study leasing operations?

The main purpose of this article is to study the nature and essence of leasing processes, models, types and forms of their manifestation in the conditions of the modern national economy.

What is leasing in simple words? This is the lease of long-term objects (cars, buildings, equipment, aircraft, etc.), that is, the transfer of a set of rights to own and use real or movable property for a certain (or indefinite) period for financial compensation.

This process most often consists of a tripartite set of relationships in which the leasing company is an intermediary between the equipment manufacturer and the company (or individual) interested in using it.

What is leasing and leasing transaction?

The economic concept considered in the article is quite complex, so the number of its definitions is large. Translated from in English the verb to lease denotes the process of renting property for temporary use. Summarizing the opinions of many authors, we can draw the following conclusion about what leasing is.

This economic term includes a set of processes for investing (attracting) financial resources, in which one subject of relations (the lessor) undertakes to purchase certain property from the manufacturer with the aim of subsequently transferring it to the use of the lessee for a certain period for a financial reward.

This process is carried out through a transaction, which is a set of agreements between the manufacturer (seller) of the leased asset, the lessor and the lessee.

The subject of such a transaction may be vehicles, buildings, structures, other movable and immovable property, entire complexes and enterprises used in business. Also, the objects of these agreements may be land plots and other natural resources, unless this is prohibited by law.

Scheme of the operation

To answer the question of what leasing is, the study will help methodological foundations conducting a transaction. The general mechanism is as follows:

1. The user (hereinafter referred to as the lessee) applies to the leasing company with an application for the necessary equipment.
2. The company providing this service assesses the liquidity of the transaction. After that, the equipment (leasing object) is purchased from its manufacturer or distributor.
3. After the lessor has become the owner of the equipment, he transfers it for temporary use to the lessee, receiving periodic payments for this.

Who is the subject of leasing relations?

The parties to the transaction may be:

1. Producer (seller) of property - a legal or natural person who enters into a contract of sale with the lessor, according to which he provides him with the subject of relations (equipment) within a specified period for a certain fee.
2. The lessee is a legal or natural person who, under the terms of the agreement, undertakes to pay for the services of the lessor and receive equipment for this for a certain period of time under the conditions defined by this agreement.
3. The lessor is a legal or natural person who acquires (for his own or borrowed financial resources) the ownership of certain property, and then provides it for a certain period of time for a financial reward in the form of the subject of a leasing transaction for temporary use to the lessee. At the same time, the right to the object of the contract can either pass into the hands of the lessee or remain with the lessor, depending on the specifics of the agreement.
4. Credit institutions (banks, communities) that provide financial resources for the purchase of equipment under a contract.

As well as other specialized entities: insurance companies and the Russian Association of Leasing Companies (“Rosleasing”).

What functions does Rosleasing have?

This association is a set of banks, leasing companies and other economic institutions that are part of the Russian Association of Leasing Companies and carry out the following activities:

1. Coordination of activities and pooling of funds of participating companies in order to carry out the most profitable projects.
2. Interaction with government agencies in order to determine the most important strategic directions for leasing.
3. Development of legal acts regulating leasing activities.
4. Active participation in international processes of economic integration.

IN Russian Federation both leasing for individuals and for legal entities is legally regulated. At the same time, its subject may be residents and non-residents of the state, as well as enterprises with foreign capital.

Leasing objects

Both the provision of fixed assets to companies and leasing for individuals imply the transfer of equipment for use, which can be conditionally divided into the following large groups:

1. Agricultural (tractors, combines).
2. Transport (cars, planes, ships, railway cars).
3. Construction (cranes, concrete mixers, scaffolding).
4. Communication equipment (satellites, radio stations, etc.).

What types are distinguished?

1. Financial - a type of leasing that provides for a full return of the value of the transfer item. In this case, the amount of transferred funds is divided into the price of equipment and the income of the lessor. Thus, the condition of financial leasing is the transfer of equipment at the end of the transaction into the ownership of the lessee.
2. Operative is an agreement under which the period of transfer of the leased asset is less than the amortization period. Unlike financial, after the expiration of the agreement, the equipment is returned to the lessor. Often this type of relationship is used for one-time promotions, when it is not advisable to purchase equipment.

What form do leasing transactions take?

In order to understand what equipment leasing is, it is necessary to explore its main forms:

1. Straight. A transaction in which, at the end of the lease agreement, the full package of rights to the subject of the transaction passes into the hands of the lessee (lessee).
2. Returnable. What is leasing with return? This is a transaction in which the lessee sells his funds to the lessor, immediately returning them in the form of a long-term lease. It is used in case of shortage of working capital at the enterprise-tenant. Upon the expiration of the transaction, the rights to the subject of leasing are returned to the lessee.
3. Mixed. With this type of leasing, the property required by the tenant is acquired at the expense of the equity contributions of the participants in the transaction. At the end of the contractual relationship, the rights to the equipment are transferred to the lessee, whose initial share of investments usually does not exceed 25 percent.

Types of lease payments

What is leasing for individuals? faces? Firstly, this is a rather complicated procedure that raises many questions, especially regarding the methods of payment for equipment. The compensation scheme is the same for legal entities and individuals and is carried out through lease payments. This concept includes the amount of compensation for the use of the subject of the transaction. Payments are made through the following methods:

• Fixing the total. The amount of the contract is divided into equal parts and paid annually during the term of its validity.
• advance method. When concluding a contract, an advance payment is made, which is indicated in it, the rest is paid according to the previous method.
• Minimum payment method. The amount of payment includes the calculation of depreciation for the entire period, as well as various remunerations of the lessor provided for by it.

The payment schedule is specified in the lease agreement. Payments can be made daily, weekly, monthly, quarterly or annually.

What is car leasing?

A relatively new product in the market of financial services for the population is automobile consumer leasing. Every day he gains more and more supporters. Let's take a look at what private car leasing is.

First of all, it is a very convenient and profitable method of purchasing transport. In fact, a person rents a car with the right to buy it later. Also, this service is popular for legal entities who find it more convenient to make a purchase in several payments.

What is car leasing? For the population, this is an opportunity to use the car immediately after completing the package of documents and making the down payment. Today, this service can be provided not only by specialized firms, but also by banks, as well as car dealers.

The procedure for obtaining a vehicle

1. Providing the client with a passport, driver's license and filling out a special application.
2. Conclusion between the client and the lessor of a vehicle lease agreement with the right to purchase, as well as a vehicle purchase and sale agreement between the leasing company and the car supplier.
3. Payment of a down payment by the client in the amount of 20-30% of the value of the subject of the transaction.
4. Car insurance by the client at CASCO and OSAGO tariffs.
5. Registration of the car by the specialists of the leasing company in the traffic police, as well as technical inspection.
6. The transfer of the vehicle by the company to the use of the consumer.
7. The client, according to the terms of the contract, makes regular payments, after the expiration of the term, the equipment passes into his possession.

Who can buy a car this way?

Any citizen who has experience in entrepreneurship can get a car for rent with the subsequent right to buy it. Moreover, preference is given to candidates with successful experience leasing operations with sufficient financial potential.

It is very important to consider all the pitfalls that car leasing has for individuals. Feedback from people who have used this service contains both positive and negative evidence.

Advantages of car leasing

1. The possibility of acquiring not only a passenger car, but also a truck, as well as special equipment. It does not matter if the equipment is new or used, purchased in the salon or from a private trader.
2. To conclude a leasing transaction, a minimum package of documents is sufficient, while the level of exactingness to customers is low.
3. Registration of the car takes place for up to 5 years, after which the vehicle can be redeemed at the residual value. It is also possible and early return of the subject of the transaction.
4. Terms of purchase and terms of equipment delivery to leasing companies are more convenient than standard ones.
5. What is car leasing for the population? These are, first of all, flexible payment schedules and the ability to immediately start operating the vehicle.
6. In case of unwillingness to register the equipment for yourself, this service is also available to the client, since the car is considered the property of the lessor.

Cons of car leasing

1. Interest on leasing agreements is higher than on a car loan (especially for low-budget vehicles).
2. The possibility of withdrawing the car in case of violation of lease payments.
3. The impossibility of renting a car or as a pledge without the consent of the company that provided the leasing services.
4. The need to provide periodic access to inspect the subject of the leasing agreement.

Thus, when deciding on the choice of the method of acquiring a car, it is necessary to carefully study all the accompanying factors, as well as the current socio-economic situation.