By leasing, we mean giving up the right to use things. The leasing contract is concluded for a definite period. By joining a leasing contract, we do not sell ownership, only the right to use the item. The lease agreement distinguishes three entities involved in the transaction. The first two, the lessor and lessee, always occur. The third entity, i.e. transferring, may or may not be a party to the transaction. Lessor, or the owner of a thing who does not sell it, but only gives it to use by another person. A lessee, that is, an entity that uses a given item that is the subject of a leasing contract. The person to whom the right to use things has been transferred is obliged to pay the leasing fee instead. Lease fees can be compared to repayment of loan installments. We can also distinguish the third entity, that is, the transferor. It is an entity that is the manufacturer of things.
What is a car leasing
Car leasing is characterized by the fact that the subject of the leasing contract, as the name suggests is a car. The lessee, when concluding a leasing agreement, receives the right to use a car owned by the lessor.
Through a loan agreement, the bank undertakes to transfer a certain amount of cash into the borrower. The loan agreement must specify, among others the purpose for which the loan is granted. This may be, for example, the purchase of a car. In this situation, the borrower does not receive money. The amount determined by the loan agreement is directly transferred to the seller of the car.
Car leasing and car loan
You can match the car leasing installments to your financial capabilities. It works in the way that the higher the amount of the final payment for the item, the lower the monthly installments. If currently our financial situation is not the best, we can choose the minimum installments, and then the final purchase price of the car will be higher. And vice versa. In the case of a car loan, the loan installment is fixed and depends primarily on the price of the car. We can not shape its height at will.
The amount of the initial payment in the case of a leasing contract affects only the amount of monthly fees, without affecting the financing costs of the lease . The loan interest rate is also dependent on the amount of own contribution. The less funds we have, the higher the installments.
In the lessee’s person, we usually meet an entrepreneur. It’s all because of the amount of taxes and fees. This form of lending is much more advantageous for an entrepreneur than for a private person.