Instead of car loans, you can make a car into lease.

Business requires considerable investments, which over time pay off and lead to expansion of opportunities. By this point, entrepreneurs are thinking about buying a car.

In the absence of free money, companies can purchase cars on credit or leasing. But often, few people understand the difference between them, so it can take a disadvantageous decision.

Before starting to compare leasing and credit, it is worth clarifying that they represent.

Car loans


The provision is inevitable in both cases, only in lease they become a funded vehicle. No other guarantees of fulfillment of obligations are required.

In the case of the car loan, the car can be purchased, as well as completely different transport or property. The main thing is to provide a bank in pledge to reduce the risks of non-payment of the loan.

In the case of the car loan, the price of the car is written off depending on the degree of wear.

Leasing allows you to apply accelerated depreciation. Legal entities who decided to issue a car into leases have the opportunity to select leasing payments so that the tax charged with profits will be reduced to almost the minimum. This is possible due to the fact that the cost of the car includes insurance, tax on transport, advance, property tax, and so on.

The percentage of the initial contribution during leasing and the car loan is different. When making the last bank require at least 15% of the cost of the car.

If you decide to arrange a car in leasing, then the amount of about 5% of the cost of the car should be the initial contribution. Loan provision is not required.

At the expense of regular purchases of vehicles, leasing companies receive good discounts, which then offer their customers. Therefore, in almost 90% of cases, leasing is drawn up on favorable conditions with a discount.

When buying a car on credit, banks rarely provide a discount to legal entities, from which it can be concluded that leasing is better under this condition.

When buying a car on credit, the Bank provides only the acquisition and insurance of the machine.

While the leasing company provides services for service, insurance, registration, as well as at the request of a legal entity, fleet management.

Leasing has more advantages over the car loan by different parameters, but cannot provide an open credit line, as an auto loan can do.

In addition, leasing is made much faster than autocredit, because it does not require the provision of collateral as a car loan. Before making a choice, the entrepreneur needs to think carefully that it is more profitable for him to date.