What is leasing for legal entities. Leasing in simple words. What is leasing in simple words
Is it time for your company to create its own fleet of vehicles? Have you, as a company manager, been wanting to purchase a luxury car for a long time? Renting a car for your organization costs a pretty penny, but you still can’t afford to purchase a vehicle of the appropriate class? Major Leasing has already prepared an answer for you - leasing for legal entities!
Advantages of leasing for legal entities
Tax benefits
- Leasing payments are fully charged to cost and reduce the taxable base for income tax. VAT on leasing payments is refundable in full, unlike interest on bank loans and loans that do not include VAT. For luxury cars, accelerated depreciation applies, which also allows you to optimize your income tax.
Maintaining investment attractiveness
- Leasing does not increase the debt on the Lessee's balance sheet and does not affect the ratio of equity and borrowed funds, that is, the Lessee's ability to obtain additional loans and bank credits is not reduced.
Possibility of financing up to 80% of the cost of the purchased car
- Leasing involves financing up to 80% of the cost of the car and does not require quick repayment of the entire amount of debt, unlike bank financing, which necessarily applies cost discounting
Prompt resolution of issues related to the purchase of cars
- When leasing, purchasing and financing issues are resolved simultaneously
Simplified option for attracting financing
- Due to the fact that part of ensuring the repayment of funds is the leasing object - a car that is the property of the lessor, it is easier for the lessee (client) to obtain a leasing contract than an alternative bank loan for purchase.
Attractive prices and tariffs for leasing cars
- Since car leasing serves as a means of selling products for manufacturers and related services for other companies, their policy, as a rule, is aimed at encouraging and expanding leasing operations, which is facilitated by the provision of special prices and tariffs for cars and related services sold under lease.
Major Leasing finances the transaction more quickly than most of its competitors. This means that within three working days you will be able to use the car you need.
With us you can arrange leasing for passenger cars of any category, as well as for light commercial vehicles, which will allow you to make a profit from your business without delay. This explains why our clients are often companies offering car rental services, carriers, as well as those entrepreneurs whose activities are directly related to the transportation of products and consumer goods.
The terms of payment, as well as the timing of the leasing agreement, are negotiated individually with each individual client. Contact Major Leasing - and our specialists will offer the most profitable solution just for you!
Leasing services and more
Major Leasing offers its clients not only to draw up a leasing agreement, but also to take advantage of the entire “package” of additional services. Why do we think this solution is the best?
Firstly, leasing “from A to Z” is cheaper for our clients.
Secondly, you can complete all the necessary documents and receive the car keys in the shortest possible time.
Thirdly, we are confident in our abilities and the professionalism of our specialists, so delays and difficulties in the process of transferring the car to the lessee are excluded.
In our office you can issue:
- car insurance;
- deregistration and registration of the car with the traffic police;
- agreement for the maintenance of a vehicle for the period of validity of the leasing agreement.
Major Leasing specialists are also ready to advise on any issues related to taxation and accounting.
What is car leasing in simple words? Welcome!
I told my friend so many times that he shouldn’t get married after a month of dating. I didn’t listen and got married.
We lived with my wife for six months, during which time we managed to get loans, but the marriage fell apart and a divorce followed.
They started to divide the car, but that was not the case. It was not purchased on credit, but on lease.
As a result, he gets to work by minibus - the car was returned to the salon. Are you wondering why this is so? Then I recommend reading up on what leasing is and how it differs from a car loan.
What does Leasing mean? In the car market, you can often hear that a car was purchased from the seller not under a regular sales and purchase agreement, but on lease.
This type of purchase is more common for law firms. Simply put, leasing means long-term rental of a car with subsequent acquisition of ownership.
One of the main roles here is played by organizations such as leasing companies, which are essentially intermediaries between the vehicle seller and the buyer.
Warning!
If you need to buy a car or other equipment, for example, an excavator, but do not have the full amount of money, then a leasing agreement will be a convenient option. Using this service, you can buy not only a vehicle, but also various expensive equipment.
In most European countries, buyers buy about 33% of all cars on lease - this is approximately 10 times more than in Russia. This option is possible and common not only for legal organizations, but also for private individuals. Let's look at this in more detail in this article.
An incomprehensible English word has appeared in our vocabulary for quite some time. Until now, many people do not fully understand the difference between a leasing agreement, a loan and a long-term lease of a car.
Indeed, these concepts are quite close to each other, but there is a significant difference between them:
- Credit - the bank transfers property to the buyer in installments, the buyer undertakes to pay the entire cost of the goods plus interest on the loan over a certain period of time, which in Russia is quite high and can range from 15 to 30% per annum, while the buyer becomes the actual owner of the property;
- Lease is a transfer for temporary use, the owner sets his own prices and obliges the tenant to make regular payments, and after the expiration of the lease agreement, the property is returned to the actual owner, that is, the tenant.
- Leasing is a hybrid form of these two types of property relations; in addition, not only the lessor and the lessee are involved, but also the car supplier.
Leasing scheme
- The lessor is a commercial financial structure that has a certain amount of funds in its accounts;
- The lessee turns to this structure with the desire to draw up a leasing agreement for one or another type of equipment - no matter what: machine, special equipment, industrial equipment, and so on;
- The leasing company finds this equipment from the manufacturer, pays for it and puts it on the balance sheet of its company;
- An agreement is signed with the customer, while the leasing company remains the formal owner of the property.
It is worth noting that today several forms of leasing are common:
- Financial - the scheme described above, when, at the customer’s request, the company searches for the necessary equipment, purchases it with its own money and transfers it to the lessee;
- operational - essentially this is the same lease, when the agreement does not provide for further repurchase, that is, the lessee uses the property, and after the end of the agreement returns it to the leasing company;
- reverse leasing - more common in the real estate industry - a company acquires assets, then sells them to another party and leases them from it (this method is used to reduce taxation).
Attention!
In most cases, individuals and small businesses primarily use only the first two types of leasing for cars.
Leasing for legal entities Most often, leasing agreements are used by companies that buy both cars and various special equipment.
This method, unlike a loan, is much more profitable.
For legal entities, this form of property relations is beneficial for a number of reasons:
- all issues of searching and supplying automotive equipment are handled by the leasing company;
- the property is not on the balance sheet of a legal entity, therefore there is no need to pay property tax for it;
- leasing payments include all associated expenses - VAT, pension fund, insurance, etc., that is, less paperwork falls on the shoulders of the accounting department;
- accelerated depreciation - the residual value of the vehicle decreases faster, and when it is completely transferred to the balance of the lessee, it will have to pay significantly less property tax.
The list of positive aspects could go on for a long time. The most interesting thing is that the state is also interested in such a scheme, since there is a quick sale of products, while it is possible to create preferences for domestic manufacturers by offering more favorable conditions for the purchase of locally produced cars and equipment.
There are, however, also negative aspects, the most important of which is that the lessee has a minimum of rights to the equipment he purchased, and if for some reason he is unable to pay the required amounts on time, then the leasing company has the opportunity to return the property transferred under the agreement without compensating for any expenses - that is, all funds paid earlier are not returned.
Leasing for individuals
An ordinary person can also buy a car and arrange it under a leasing agreement. Let’s say right away that this method will be beneficial when purchasing very expensive foreign cars.
First of all, we note that leasing for individuals is not as profitable as it is described on the websites of leasing companies. A careful reading of the contract shows that any noticeable benefit is possible only when leasing quite expensive cars - from a million and above.
As a rule, these are expensive foreign cars that are beyond the means of the average Russian citizen. The majority of ordinary Russians hope to become owners of budget cars.
The conditions are, in principle, the same as when applying for a bank loan:
- mandatory confirmation of solvency - a corresponding certificate from the employer;
- provision of documents - passport, tax number, driver's license or any other document to confirm identity, consent of spouse, guarantors;
- down payment - 10-20 percent.
The only positive thing is that the car is listed on the leasing company’s balance sheet, so there is no need to pay transport tax. All other payments - CASCO, OSAGO, registration, fines for traffic violations - although formally fall on the lessor, in reality fall on the shoulders of the individual.
Advice!
In a word, leasing and car loans for individuals have minimal differences.
Moreover, the bank, if the client is unable to service the loan, confiscates the car, but returns the difference - everything that was paid, minus depreciation and services. The leasing company will not return the money, since according to the documents it was the owner of the vehicle.
source: http://avtopravilo.ru/
How to buy a car on lease for individuals
buy a car on lease for individuals What is leasing in simple words? This word hides a long-term lease agreement for a car, with a subsequent possible right to purchase it.
The purchase-purchase process is carried out in several stages simultaneously with the payment of rental fees.
The process of acquiring any property under leasing agreements on the territory of the Russian Federation is regulated by the legal act “Federal Law No. 194”.
The act itself appeared in 1998 and related to the field of activity of enterprises - legal entities. In 2010, changes were made to the law to make it possible for individuals to lease a car. In addition to the car, they can now lease any movable and immovable property.
How does leasing work for individuals?
Drawing up a leasing agreement is possible for any private person. Leasing terms:
- the person must be a citizen of the Russian Federation;
- he must be an adult (at least 18 years of age);
- with permanent registration at the place where the leasing agreement will be concluded.
List of documents for purchasing a car on lease for individuals:
- Passport of a citizen of the Russian Federation (make copies of all pages of the document).
- Another document confirming the identity of the owner. Such a document is a driver's license, a pension certificate (a mandatory condition, the presence of a photograph in the document).
- A document confirming the availability of income (work book, contract).
- Certificate of income in form 2NDFL.
What is better - taking out a loan or leasing a car?
car leasing The contractual relationship between car leasing and car loan is partially similar. In both situations, there is a down payment and a schedule of cash payments according to the plan.
The main difference between these documents is that in a credit relationship, the car immediately becomes the property of the person who borrowed the funds, although it remains collateral for the financial institution that provided the funds.
Warning!
When concluding leasing agreements, the equipment remains the property of the company. According to the terms of the leasing agreement, the car changes ownership upon expiration of the document.
Registration of a car under leasing can be done in two options:
- Leasing with transferable ownership of a car.
- Leasing without transfer of ownership.
The differences between these options for concluding a deal are in the down payment. In the first option, it is from 20 to 49 percent of the cost of the car. In the second option it is slightly less, from 10 to 49 percent.
To compare all the possibilities for an individual to purchase a car on credit or lease, we will give a practical example.
1. Car on credit:
The cost of the car is 1,200,000 rubles.
Loan for 24 months.
Advance 20 percent.
The annual rate is 15.5 percent.
As a result, the expenditure portion will amount to 1,362,000 rubles. Down payment 240,000 thousand. Monthly payment 47 thousand rubles.
2. Car lease with transfer of ownership rights:
Cost - 1,200,000 rubles.
Payment amount - 42,711 thousand rubles
The total amount is 1,241,000 thousand rubles.
In the second version of the leasing agreement, the cost part is even less.
Car leasing without down payment for individuals
In addition to the options described above, there is also the possibility of purchasing a vehicle on lease without a down payment for individuals.
In this case, the person purchasing a car on lease for individuals. persons provide a security deposit in the amount of ten percent of the contract amount.
These funds are returned to the client after the end of the contract. Recently, leasing used cars has become very popular in Russia.
Is it possible to buy a used car on lease Today, leasing companies provide the sale of used cars.
The process of purchasing such equipment is practically no different from buying a new car.
The company provides only verified used cars for leasing, the service life of which does not exceed ten years at the end of the contract.
In addition, the organization providing equipment on lease, in the event of any malfunctions, carries out all maintenance work at its own expense. By providing an equivalent car in return, either for the time necessary to troubleshoot problems, or completely as the subject of a contract.
To buy a car on lease, an individual just needs to follow a few simple rules:
- Select a leasing company.
- Collect the necessary package of documents.
- Decide on the make of the car and its condition (new or used).
- Get acquainted with the package of offers of the leasing company either on the organization’s Internet resource or in the company’s office.
- Submit an application.
If these simple rules are followed, an individual will be able to freely purchase a car under a leasing agreement.
source: http://youandcredit.ru/
Today it is almost impossible to imagine the existence of an economy without lending services.
This form of interaction between the buyer, seller and credit institution significantly boosts the turnover of funds. At the same time, lending is always associated with certain risks that have to be covered by interest rates.
Nowadays, competition between banks and other credit institutions forces us to look for more and more new ways to attract customers. But no one wants to lose profit, so the emphasis is not on reducing the loan rate, but on convenience for the client.
So, just recently, not many people knew about car leasing, and several years ago it was not at all available to individuals. Today, most credit institutions can provide any client with this opportunity. What is car leasing in simple words?
Leasing is a financial operation, named from the English. “to lease”, which can literally be translated as “renting out”. However, in essence, leasing is another type of lending that only includes rent as an element of the contract.
Attention!
Everyone, one way or another, has heard about car loans, but car leasing provides much broader opportunities for the client of a leasing organization than a traditional loan.
The lessee can obtain for use almost any vehicle available on the market - passenger cars, trucks, special purpose vehicles, and so on. It also doesn’t matter whether the car is new or used, whereas car loans almost always deal with new cars.
An individual or a company that decides to lease a car simply receives it for rent.
The owner of the equipment remains the leasing organization, but after paying a certain amount under the contract, the car can be purchased at its residual value, taking over full ownership. Essentially, by making monthly payments, you are simply leasing the car and not owning it.
Psychologically, this can be depressing for an ordinary car enthusiast, but this is perhaps the only disadvantage of this approach. Since the lessee is not the owner of the car, the organization that provided the leasing risks practically nothing.
Warning!
If you stop paying the lease, the car is simply confiscated from you. Thus, leasing does not require any collateral, the consent of the spouse, a mandatory guarantee, certificates from the place of work, and often even a down payment is not required.
The registration procedure lasts only a few days - an application for leasing is submitted, you choose a car model, seller, additional services, provide the necessary documents, the lessor makes a positive decision, an agreement is drawn up, registers the car in his name and transfers it to you for use - by proxy.
To summarize what car leasing is in simple terms, it is opportunity. For an ordinary car enthusiast, leasing provides the opportunity to drive any model of car without having a large income. The amounts of monthly payments are small, since they are determined not from the entire cost of the car, but only from its part.
You can maintain your image without actually owning a car. You can often exchange one car for another, since it is not necessary to buy it, and the cost of such a lease is much lower than a traditional lease, without the right of purchase.
For an organization, leasing is an opportunity to painlessly renew its fixed assets. In this case, it is possible to introduce new equipment into your vehicle fleet with a minimal reduction in working capital.
There is no need to pay 100% of the cost of the equipment, nor do you need to pay large credit bills. Leasing allows an enterprise to save significantly on taxes - property tax is paid by the lessor, and motor vehicle tax is already paid by the lessee; profit tax is reduced, since leasing payments are considered expenses.
Leasing allows a company to get any car, and also allows it to be replaced with another if the need for it is no longer necessary. In addition, the contract has the opportunity to stipulate even the schedule and amount of monthly payments, depending on the seasonal profit of the enterprise.
source: http://autogrep.ru/
What is the difference between leasing and renting
Differences between leasing and renting Leasing, to put it very simply, is a long-term lease with the right to purchase. Translated from English, the word “leasing” is translated as rent.
It would seem, why create confusion? Well, rent, and let it be rent! But it turns out that not everything is so simple.
Lease is a general name for a type of legal relationship. Leasing is a type of rental with its own differences and limitations. (Like, for example, cars are a general category, and cars are a variation of this general category).
- When leasing, the property that will be leased and the seller of this property are chosen by the lessee (for example, you). And the leasing company then acquires this property and transfers it to you for temporary possession and use for a certain period.
- Leasing provides certain tax benefits for businesses.
- After the end of the leasing agreement, the leased asset is transferred to your ownership.
The given differences 1 and 2 are the prevailing practice in Russia (although the leasing agreement may provide otherwise). For more information about the differences between leasing and renting, read the article “How is leasing different from renting?”
Advice!
Leasing is considered (of course, conditionally, not legally) one of the forms of purchasing equipment and cars for enterprises and individual entrepreneurs. Actually, leasing in Russia was introduced as a tool for business development and renewal of fixed assets of enterprises.
Only in May 2010, the restriction on the use of leasing exclusively “for business purposes” was removed from the leasing law. Thus, restrictions on leasing for budgetary institutions and ordinary citizens (individuals), and on leasing residential real estate were lifted. Although, to be honest, the benefits of leasing for individuals are still not obvious (see the article “Disadvantages of leasing for individuals”).
Classic example of leasing
Let’s say your company’s volume of orders is growing, and the existing equipment can no longer cope. You decide to purchase additional equipment to expand production. And in order not to withdraw turnover from the business (usually there is not enough of it anyway), purchase equipment on lease.
- You select the necessary equipment, agree with the seller on all its characteristics and price, and contact the leasing company.
- You enter into a leasing agreement and pay an advance of 20% of the cost of the equipment. You put the equipment into operation and start producing products. Pay monthly lease payments.
- Your customers are happy that they receive orders on time. You are happy that the equipment earns you additional profit.
- After the lease ends, you receive ownership of the equipment.
This is, of course, a very simplified diagram. We will cover all the stages and questions in more detail below. So ask questions! Good luck to your business! And leasing helps!
source: http://leasing-help.ru/
What is leasing? In simple words about the main thing
Lending to individuals today in many banking structures is represented not only by the usual types of loans, but also by a relatively new financial product called car leasing.
For Russians, this concept is just coming into use, while residents of the European Union purchase more than a quarter of all cars in this way. So what is it and what are the features of leasing transactions?
Alternative to credit - what's the point?
Alternative to a loan The main points of leasing contracts are regulated by Law No. 194-FZ, according to which two parties enter into an agreement to purchase property.
The peculiarity is that the product is chosen by the lessee (tenant), and the purchase of property, for example, a car, is carried out by the lessor (lessor) at his own expense.
Then the object is given for temporary use (rent) to an individual for a fee and with the right of subsequent redemption.
Simply put, leasing is a rental agreement with the possibility of phased acquisition of goods.
What then is the difference between a regular lease and a financial lease? Regular rental of property involves temporary use for a set fee. Financial leasing (translated from English the word “leasing” means rent) implies the final transfer of ownership at the end of the term.
Leasing payments (about 5.5% of the total cost of the goods) consist of two parts - fees for the services of the lessor company and fees for the property itself. Another interesting point: what is better – a car loan or a leasing purchase program?
The similarity of the options is obvious - the down payment, the interest rate, and the need to make monthly payments. The key difference is that when lending, the property immediately becomes the property of the borrower, while simultaneously acting as a guarantor (collateral) for the execution of the transaction.
In a leasing transaction, the object remains the property of the lessor and will become the property of an individual only after full redemption. Relatively recently, after the adoption of amendments to the law, car leasing became available to individuals.
Warning!
Previously, only legal entities and entrepreneurs had the right to use and evaluate the benefits of this financial instrument. And many leasing companies even now, even after the passage of time, prefer to work according to classic programs aimed at organizations and individual entrepreneurs.
But over the past year, there has been a tendency towards the development of the retail business to work with ordinary citizens. From the client’s point of view, this product is also beneficial because leasing covers vehicles from different manufacturers, and you can choose any car at the official dealership.
There are also additional features in the form of special discounts (up to 10-15% of the total retail price) from car dealerships when purchasing a car through leasing.
Where should you apply for car leasing?
First, you need to decide on a specific brand of car and notify the dealer about your choice of financial institution. By the way, the object can be not only passenger cars, but also cargo ones, as well as boats, yachts, airplanes, helicopters and other expensive property, including real estate.
Then you should find a reliable company that provides services to individuals. This could be a credit institution that directly cooperates with car dealerships. The second option is a company created by banking structures or an insurance institution.
Leasing programs are presented:
- In banks - in this case, seized cars are also sold.
- Car dealerships have the advantage of providing good discounts on leasing programs.
To get acquainted with the detailed terms of car leasing, it is better to contact the financial institution directly. The main thing you need to know is a simplified transaction procedure, the possibility of purchasing vehicles costing from 400,000 to 6,000,000 rubles, for a period of 1 to 4 years. Leasing is the most profitable for purchasing expensive property.
There are two types of car leasing offered on the financial market today:
- With the transfer of ownership at the end of the term, the client buys the object at its residual value, and the down payment amount is from 20%. The residual value is determined individually depending on the make, cost, condition and configuration of the car model and reaches up to 80% of the total cost.
- Without transfer of title to the property - as a result, the client does not buy the property, but returns it to the lessor; the amount of the down payment varies from 10%.
Once a financial institution has been selected, you will need to fill out a standard package of documents. If approved and a decision is made to sign the contract, the desired car is transferred to the use of the lessee.
Remember important details
- The car enthusiast becomes the user, but not the owner of the car.
- Lease payments are usually tied to the dollar exchange rate (according to the terms of the contract).
- How and where to carry out insurance, repairs and maintenance is determined by the owner of the car, and the lessor pays the costs in the amount of lease payments.
- The vehicle must not be tuned, damaged or significantly modified.
In conclusion, we note that leasing is also good for individuals because it is legitimately included in the state program of measures to stimulate demand for cars in Russia. This means that financial organizations, in turn, will take measures to improve the efficiency of their products and make the mechanism of leasing transactions more accessible and profitable for a wide range of consumers.
Experts predict sales growth to 1 million cars per year. Despite the fact that most citizens are accustomed to standard schemes for purchasing property, the number of applications for new leasing programs continues to grow, and financial lease agreements are increasingly replacing standard lending.
Today, a banking operation called “leasing” is becoming increasingly widespread. What is "leasing"? How is it better and why is it worse than a regular loan? How is leasing beneficial for a bank or credit institution (lessor), and why is it beneficial for the enterprise (client). How accessible is it and who is it intended for? What exactly can you get by leasing? How does a leasing transaction take place? I will try to answer these and some other questions relatively briefly in this article.
Perhaps we should start with a definition. So, leasing is one of the forms of credit, in which the property is transferred for a long-term lease with a subsequent right of purchase and return. If we adhere to greater rigor in concepts, then the following definition of leasing should be mentioned. Leasing is a set of economic and legal relations, according to which the lessor undertakes to acquire ownership of the property specified by the lessee from a seller specified by him and to provide the lessee with this property for a fee for temporary possession and use with the right of subsequent redemption. The leasing agreement may provide that the choice of the seller and the purchased property is made by the lessor. Now we can identify the main participants in the leasing operation. This:
- Lessee(The client is usually a legal entity)
- Lessor(Commercial bank or other credit non-banking organization, etc.)
- Provider(Equipment seller: industrial enterprise, real estate company, auto manufacturer or dealer, etc.)
- Insurer(Basically, any insurance company)
Let's consider the role and functions of each of them.
Lessee- an individual or legal entity who, in accordance with the leasing agreement, is obliged to accept the leased asset for a certain fee, for a certain period and under certain conditions for temporary possession and use in accordance with the leasing agreement. Actually, it all begins with him.
Lessor- an individual or legal entity who, at the expense of borrowed and (or) own funds, acquires ownership of property during the implementation of a leasing agreement and provides it as a leased asset to the lessee for a certain fee, for a certain period and on certain conditions for temporary possession and use with transfer or without transfer to the lessee of ownership of the leased item. As noted above, a commercial bank, a non-bank credit organization, or a leasing company can act as a lessor. In principle, the lessor can be a legal entity or an individual.
Supplier or seller- an individual or legal entity who, in accordance with a purchase and sale agreement with the lessor, sells to the lessor within a specified period the property that is the subject of leasing. The seller is obliged to transfer the leased item to the lessor or lessee in accordance with the terms of the purchase and sale agreement. The seller can simultaneously act as a lessee within the same leasing legal relationship. Any of the leasing entities can be a resident of the Russian Federation or a non-resident of the Russian Federation.
Insurer is an insurance company that is usually a partner of the lessor or lessee. It participates in a leasing transaction, insuring property, transport and other types of risks associated with the leased asset and/or the leasing transaction. The function of the insurer in a leasing operation is to draw up an insurance contract when concluding a transaction between the lessee and the lessor. Unlike other participants, it is not required when concluding a leasing transaction. It is used only in certain schemes when transaction insurance is required.
So, some commercial banks carry out operations called leasing. Leasing assumes that the bank (lessor) purchases equipment, which it leases to its client with a subsequent right to purchase the leased equipment. Today, this area of non-traditional banking operations is developing very actively; there are hundreds of credit institutions that provide their clients - commercial organizations - with leasing services for this or that equipment. (As a rule, leasing is more often used by legal entities). It should be noted that now one can often encounter a situation where leasing is separated from the total mass of various banking operations into a separate division.
Credit organizations most often provide financial leasing services through specially created one hundred percent “subsidiaries” - leasing companies, therefore often the first part of the name of the leasing company coincides with the name of the founding credit organization. (Examples: PromSvyazLeasing, Avangard-leasing; Petroconsult Leasing company; KMB-leasing; Agroprom Leasing, etc.) Leasing contains elements of credit, rental and delivery. Today we can say that leasing is no longer just one of the banking operations, but a separate specialized type of business. (It is for this reason that separate leasing companies are often created, since sometimes for a number of reasons it is simply not profitable for banks to carry out leasing operations on their own).
Question: What can you get on lease?
Answer: any movable and immovable property that can be used for business activities. For example, buildings, special equipment, equipment, transport, aircraft, communications. However, it is quite difficult to lease real estate, since the minimum depreciation period is 10-12 years, while financial lease usually does not exceed 5-6 years. Car leasing is especially popular today: often they are even registered to the company, but are actually given to employees for use. The subject of leasing cannot be land plots and other natural objects, as well as property that is prohibited for free circulation by federal laws. (For example, weapons).
Many firms and enterprises at a certain stage of their development, be it the opening (or creation) of a new enterprise, expansion, or technological update of an existing one, come to the conclusion that it is more profitable for them to purchase certain equipment on credit (leasing), so that, gradually by paying the shares determined by the bank, redeem it completely. This allows you to reduce the costs of the enterprise, but at the same time purchase the necessary equipment in the shortest possible time.
How does a leasing transaction work? Let's assume that a certain company has already chosen a suitable organization that provides leasing services. Then, as a rule, everything begins with a regular telephone call from a potential lessee to the leasing company. Then there is a direct meeting between representatives of the leasing company (lessor) with representatives of the lessee company or the lessee himself. During the meeting, the parties receive information about each other and also discuss the nuances of the proposed transaction. In the event that both parties to this meeting are ready to begin implementing the project, the company will be asked to fill out a leasing application, after which it will also require a certain list of documents necessary for consideration of the application. (). After which a thorough analysis of the information provided is carried out. Typically, processing of such information takes about 10 days. Sometimes a little less, sometimes a little more, depending on specific conditions. After the credit institution (lessor) makes a positive decision on the company’s application, a stage occurs at which all necessary agreements are drawn up and signed between the lessor, lessee, supplier (seller) and, if required, by the insurer. After concluding an appropriate agreement between the lessor and the lessee (company), the lessor directly acquires ownership of the leased item specified by the client (company) from the supplier (seller), also specified by the client. The purchase and sale agreement for the leased asset, concluded between the lessor and the supplier (seller), fixes the obligations of the supplier (seller) to supply equipment (the leased asset) within a certain time frame, its cost and payment procedure, quality and completeness, delivery and installation obligations, if not otherwise stated. Next, the leased item is delivered either directly to the client or first to the lessor, depending on the agreement. In advance, if required, it is possible to insure it against a full range of property risks. From the moment the equipment (the leased item) is transferred to the client, he is responsible for the safety, proper storage conditions and maintenance of the equipment in working condition. (Unless otherwise stated). During the term of the leasing agreement, ownership of the leased asset remains with the lessor, and the client company uses the equipment for its own purposes, paying monthly (or quarterly) payments established by the leasing agreement. In case of failure to make payments in accordance with the leasing payment schedule specified in the contract, the lessor has the right to withdraw the equipment owned by him and sell it on the secondary market. If the client makes lease payments in accordance with the schedule and pays the contract amount in full, ownership of the equipment passes to him. All income and profits received by the client during the use of the equipment are the property of the client.
As it turns out, everything is not so complicated. And now, after all the main theoretical issues have been considered, I will move on to describe the most important advantages and disadvantages of leasing, while simultaneously comparing it with a loan.
- Leasing allows the lessee company to save on taxes. For example, Chapter 25 of the Tax Code of the Russian Federation states that payments under leasing agreements fully reduce the tax base for income tax. This means that the state gives domestic enterprises the legal opportunity, through leasing, to direct their resources to expand production and introduce advanced technologies, and not to pay taxes. By the way, the leasing company also has the opportunity to save on taxes.
- Leasing interest rates, which according to various estimates range from 9-15.5% in foreign currency and 16-21% in rubles, can often be 2-4% higher than the rates when obtaining a loan. After all, as a rule, the leasing company (if it is separate) itself receives loans from the bank, which means it lays down a certain margin. However, even despite this, leasing operations turn out to be 15-25% more profitable than a loan. (The total tax savings, technical capabilities of the lessor and other advantages, in general, easily pay for all costs of margin, etc.) (The scheme discussed in this paragraph is presented below. It is quite common).
- Leasing gives a company the opportunity to update technological equipment without any special complications, and therefore restore and increase the company’s potential. (About 70% of all equipment in Russia is worn out, both physically and morally. Many promising enterprises cannot realize their full potential, working on outdated equipment that is unable to produce products that meet the requirements of the modern market. Leasing is an effective way to replace worn-out equipment, accessible to enterprises in the real sector of the economy). This also allows the lessee company to fully comply with all modern requirements, both in terms of equipment and the quality of the products produced (or services provided). Having modern equipment, the lessee company has the opportunity to plan its business for several years in advance, reducing the main risks.
- Minimization of risks due to the limited liability of the lessee. At the same time, the leasing company reduces the risk (compared to a loan), because has an indisputable right to ownership of the property, and accordingly, in the event of bankruptcy for any reason, the lessee company (client) has the priority right to payments. (Refunds)
- Thanks to minimizing the risks of the leasing business, it is often much easier for a client to enter into a financial lease agreement than to obtain a “long-term” loan. This is especially true for medium and small businesses, for which banks provide loans very carefully. Some companies sometimes do not require any additional guarantees from the client, since the equipment itself (the leased item) is the collateral.
- A leasing agreement is more flexible than a loan agreement: a loan always involves limited terms and amounts of repayment. When leasing, the lessee company has the opportunity to work out a convenient and flexible financing scheme with the lessor.
That, in principle, is all that any company (and possibly an individual) needs to know as a potential lessee. Often, leasing actually turns out to be much more profitable than a loan, both for the lessee and for the lessor.
Leasing (long-term financial lease) is a transaction during which the leased object is issued to the recipient for a long-term paid lease with the possibility of subsequent purchase.
For legal entities, this service has some features. For example, when purchasing a car on lease, a legal entity has the opportunity to register it on the balance sheet as a fixed asset. Also, legal entities have the right to write off fuel mixtures, spare parts and other consumables that are leased. In the case of leasing for individuals, these issues are mainly dealt with by the company that issued the leasing.
The most common leasing items are vehicles. Also, a variety of non-consumable things, with the exception of land, can be leased.
Leasing for individuals and legal entities: is there a difference?
Today, both individuals and legal entities have the opportunity to obtain leasing. The main thing is that they are not entrepreneurs. The general scheme for obtaining leasing for them remains the same and looks as follows.
The client wants to buy a car, but he does not have the money for such a purchase. He contacts a company providing leasing services. Tells the company representative what kind of vehicle he would like to purchase and shows the necessary documents.
The package of documents for obtaining a leasing, unlike a regular loan, is minimal. Usually you only need to provide a passport, an application, a driver’s license and a document confirming the state registration of a legal entity.
An agreement is concluded between the leasing company and the client. From the moment the contract is signed, the client becomes the lessee.
Until 2010, the provisions of the Law “On Leasing” included a note according to which the leased item could be used exclusively for commercial purposes. Mostly buses, trucks and various agricultural equipment were purchased on lease. After eliminating the mentioned note, leasing became attractive and accessible to individuals, because It became possible to take out passenger vehicles on long-term finance leases.
After signing the agreement, the leased asset goes into use of the legal entity. The key word here is "use". The lessor remains the sole legal owner of the vehicle. The costs of routine maintenance of the leased asset are borne by the lessor. In fact, they are paid by the leasing recipient, because all these costs are included in regular payments.
In most cases, leasing payments are less than payments on a regular financial loan. Reducing the amount of leasing payments becomes possible thanks to the deduction of the so-called. residual value.
In leasing, the residual value refers to the redemption price of the car, which will need to be paid to a legal entity at the end of the lease agreement in order to receive the vehicle into its own ownership. If desired, he, of course, may not purchase the leased asset. The procedure for action in such a situation is discussed separately and approved by the contract.
The size of payments is to some extent influenced by the absence/presence of a down payment and its size. The more the lease recipient pays at the very beginning, the less money he will have to transfer every month - the arithmetic is simple.
During the term of the leasing agreement (usually it is concluded for 1-5 years), the legal entity has the right to use the car. You just need to regularly transfer payments, and closer to the end of the contract, make a decision: return the leased asset or buy it back into your own ownership.
Signs of leasing | Description |
---|---|
Concept | Under a leasing agreement, the lessor undertakes to acquire ownership of the property specified by the lessee from a seller specified by him and to provide this property to the lessee for a fee for temporary possession and use |
Type of obligation | Obligation to transfer property for use |
Object of the agreement | Possession, use |
Legal nature | Mutual, bilaterally binding, consensual, compensated, urgent |
Parties | The lessor (often represented by leasing companies) is an individual or legal entity that, at the expense of borrowed and (or) own funds, acquires ownership of property during the implementation of a leasing agreement and provides it as a leased asset to the lessee for a certain fee, for a certain period, for under certain conditions for temporary possession and use with or without transfer to the lessee of ownership of the leased asset. The lessee is an individual. or legal a person who, in accordance with the leasing agreement, is obliged to accept the leased asset for a certain fee, for a certain period and under certain conditions for temporary possession and use in accordance with the leasing agreement. The seller acting on the side of the tenant or lessor as the subject of leasing relations is an individual. or legal a person who, in accordance with a purchase and sale agreement with the lessor, sells to the lessor within a specified period the property that is the subject of leasing |
Types of car leasing for legal entities
Car leasing for legal entities is issued according to two main schemes, namely:
- with the transfer of ownership of the leased item. At the end of the leasing period, the client has the opportunity to become the full owner of the vehicle by purchasing it at its residual value;
- without transfer of ownership rights. At the end of the contract, the vehicle can be returned to the leasing company, choosing another one instead and signing a new agreement.
Advantages of leasing for legal entities over a conventional loan
Leasing for legal entities has many advantages.
Firstly, the leasing company remains the owner of the car. Thanks to this, a legal entity is exempt from activities related to the registration and management of motor vehicles. Individuals, at the same time, may not officially be the owner of the vehicle, but have all the rights to operate it.
After completing a leasing agreement and receiving the vehicle at personal disposal, the legal entity is provided with VAT on the full cost of the item. The car is subsequently placed on the balance sheet of the organization, the representative of which is a legal entity. Thanks to this, the organization has the opportunity to register depreciation as a gross expense, which allows it to reduce the amount of income tax. Commission deductions also move into the gross expense category.
Secondly, when leasing, both legal entities and individuals are not simply given a loan of money to purchase the desired vehicle, but are provided with a whole range of services accompanying the purchase of the leased item.
For example, many companies independently administer warranty and insurance situations, organize technical maintenance and provide roadside assistance, provide their customers with 24-hour support, etc.
Thirdly, when leasing, legal entities can avoid the need to make an advance payment. Many leasing companies provide this opportunity. In the case of purchasing a vehicle on credit, the down payment in the vast majority of cases is mandatory.
Fourthly, leasing is issued in a much shorter time when compared with the same standard car loan.
Fifthly, a legal entity gets rid of the need to collect many documents and certificates, as is the case with a regular loan.
Leasing for legal entities in questions and answers
Having analyzed the main questions of legal entities about leasing, the following list was compiled in a convenient form.
Who bears the costs associated with leasing a car?
The leasing company will cover the costs associated with registering the vehicle and its further insurance.
Who pays for re-registration of the car after the end of the contract?
In this regard, each leasing company dictates its own terms. This point is reflected in the contract and agreed upon from the very beginning.
Which interest rates are more profitable: on a loan or on a lease?
Leasing allows legal entities to purchase vehicles with a zero down payment and at zero interest. If desired, the client can make an advance payment, thereby reducing the amount of regular contributions.
What insurance do I need to take out for a leased car?
The client must purchase full CASCO insurance and apply for compulsory motor liability insurance. In the case of leasing, a legal entity is exempt from the need to take out accident insurance and purchase a life insurance policy. In the case of a regular car loan, the previously mentioned insurance products are required to be purchased.
Can the lessor withdraw the leased asset?
In accordance with current legislation, the lessor retains the right to revoke the leased asset in court if the client violates the terms of the contract.
In practice, litigation is extremely rare. This is preceded by numerous negotiations aimed at settling debts. As a rule, leasing companies provide legal entities with deferments and the opportunity to restructure debt. In most situations, the parties manage to reach a peaceful agreement.
It is simply not profitable for leasing companies to return leased items for their further sale, because such resales are unprofitable.
What to pay attention to when concluding a leasing agreement?
The form of the leasing agreement is determined by the company at its discretion. The agreement must not have any discrepancies with current legislation. It must fully reflect all agreements reached by the parties at the time of signing the contract.
First of all, you need to study the schedule of regular payments, familiarize yourself with the terms of insurance and the possibilities of making changes to the body of the contract.
What affects the interest rate on leasing?
The interest rate is primarily a separate definition that reflects the amount of interest accrued on the balance of the debt. As a rule, leasing companies do not use interest rates in their traditional sense, but use a definition of appreciation that reflects the actual amount of payments made by the client during the lease term.
An increase in price should be understood as a fee for the services provided. The list of services is left to the client’s choice, and the amount of the increase in price directly depends on their cost.
Thus, leasing for legal entities is not particularly different from leasing for individuals. There are minor discrepancies, but the client must be notified of them individually.
In this article we will look at how to buy a car on lease. We will find out under what conditions the sale of new cars and trucks with mileage is carried out, and we will also figure out how to calculate leasing using a calculator. We have prepared for you a list of companies working with individuals, legal entities and individual entrepreneurs, and collected reviews.
TOP 10 companies providing cars for leasing
Features of car leasing
Passenger cars and other vehicles is a service that combines the characteristics of credit and rental relations; Not only the lessor and the lessee are involved here, but also the supplier (seller) of the property.
The scheme for buying a car on lease is quite simple. The cost of the car is paid in full or in part by the leasing company, after which the vehicle is transferred to the client for use, i.e., leased with the right of subsequent purchase. The client pays the loan amount gradually over a certain period. After paying the full price, he becomes the full owner of the property. Next, the client can sell the car purchased on lease or use it at his own discretion.
Until recently, only legal entities and individual entrepreneurs could be clients of leasing companies. Property was acquired, as a rule, for commercial purposes. Today there is a new direction in leasing - the provision of services to individuals, including the purchase of cars. The service is provided in Moscow and other regions of the country, subject to the presence of a branch of the selected company.
The price of a car is not significant for many leasing organizations, but most of them specialize in purchasing new cars.
The key condition of the transaction is the client’s ability to pay the cost of the leased car.
How to buy a car on lease
In order to lease a car, you need to choose a company with the most acceptable program conditions. After that, you visit the organization’s website and fill out an online application. The following information must be reflected in electronic form: Full name. (or company name - for legal entities), date of birth, contact details, your location, the leased item (for example, a car), its cost and the amount of the advance payment.
After filling out, you submit the application for consideration and wait for feedback from a company representative. The manager will agree on some issues and, if everything is in order, will invite you to the office to conclude the deal. In some organizations, it is possible for an employee to travel to a client. Next, you need to prepare a package of documents, on the basis of which the company decides to purchase a vehicle from a dealer or refuse to lease you.
If the decision is approved, you agree on the terms of the transaction, sign the contract and make an advance payment. The leasing company buys a vehicle that you can take back for your use.
How to calculate lease payments
Online calculators are provided on the websites of leasing companies. With their help, you can calculate the terms of the leasing agreement in numbers: the amount of monthly payments, the total cost of leasing taking into account the interest rate, the amount of the advance payment, etc.
For example, let's use the calculator on the Europlan website. With a vehicle cost of 1 million rubles, an advance payment of 20% and a leasing period of 60 months. The monthly payment will be 17,140 rubles.
Buying a car on lease for legal entities
Almost any commercial activity is not complete without the use of vehicles - cars, trucks, special equipment, etc. A car can be bought or rented. At the same time, leasing for legal entities. persons - the optimal solution for buying a car.
The company has the opportunity to use transport in its activities without incurring significant expenses, and also receives certain tax preferences. Purchased cars are on the balance sheet of the leasing company during the entire period of the contract. Standard leasing schemes allow you to profitably purchase not only new models, but also used cars, i.e. cars or used ones.
Car leasing allows enterprises to conduct business as quickly as possible. All necessary documents and transactions are carried out, as a rule, within 2 - 3 days.
Buying a car on lease for individual entrepreneurs
Leasing provides individual entrepreneurs with the opportunity to make a profit through the use of a vehicle for commercial purposes. An entrepreneur saves his own resources, which can be used to develop the business. The item of purchase is the property of the company, even if a used car was purchased on lease. The organization assumes the bulk of its obligations.
The term of the deal is from 3 to 5 years. Leasing payments are made by the entrepreneur monthly. Debt repayment schedules are usually quite flexible. At the same time, leasing registration often does not exceed 2 days.
Types of car leasing
The most common types of financing are financial and operational car leasing.
- this is the standard option, when the company pays the cost of the vehicle, puts it on its balance sheet, and then transfers it to the customer for use. Upon expiration of the agreement and full payment of the cost, the property becomes the property of the customer.
Operating leasing supports all of the above conditions, but does not imply the subsequent purchase of the vehicle. The property is transferred to the client on a lease basis. After the end of the transaction, the car is returned to the leasing company.
What cars can be leased?
You can lease a new car, truck or used car, but under certain conditions. Vehicles are purchased only in good condition; their service life should not exceed 5 - 7 years.
Many companies cooperate with official dealers. With their help, you can buy a vehicle that will be available at a car dealership. It is also possible to wait for a car made to order.
Advantages of car leasing
By using the services of leasing companies, you receive the following advantages:
- Favorable tariffs and prices.
- Tax benefits.
- Speed of transactions.
- Accelerated depreciation.
- Flexible debt repayment schedules.
- No significant restrictions on models and types of vehicles.