Leasing or credit

Leasing or credit. What is more profitable? In search of financial resources for business development many companies give preference to leasing. Especially today, when its difficult to get credit. Progressively managed companies are always in search for new decisions, nowadays leasing has a lot of advantages in comparison with the credit, being more effective instrument of financing a vehicles.

We offer you to compare leasing and credit to be convinced of its advantages.

The main advantages leasing Avis Ukraine:

  • operative decisions
  • allotment of residual purchase price for reducing of the monthly payments
  • advance payment from 0% till 20% from the price of leased subject
  • no need to create own fleet
  • no need in fleet controll staff (control can be carried out by the financial manager or CEO’s assistant )
  • economy of time and efforts on searching and keeping the car, choosing optimal and profitable conditions of insurance, loan service
  • leasing company searches, reserves, controls the quality and delivery terms of the car, mounts additional equipment
  • you do not need to hold a lot of negotiations, meetings with suppliers, insurance companies, banks, suppliers of additional equipment, wait in lines to register your car – all these things do Avis employees
  • leasing company do all payments, including registration, transport due, expenses on currency exchange etc
  • the leasing object cannot be arrested

Taxation advantages:

  • 100% of Lessor’s commission charged to total expenses
  • charging off the depreciation over the balance value of the leasing subject reduce taxation base
  • 100% of fuel charged to total expenses
  • leasing remuneration is not a subject for VAT
  • service is charged to total expenses

Tax advantages of operational leasing:

  • all payment deducted from total expenses
  • possibility to use a car without big expenses

Comparison credit vs leasing:

  credit leasing
 
Time for taking decisions
Time for checking documents
1-3 days

from 1 day to few weeks

1-3 days

from 2 hours to 2 days

Potential customer Private companies Private companies and representative office
Availability of own car fleet YES NO
Number of documents needed for checking 15-20 12
Necessity of notarial assurance YES NO
Number of agreements
    Minimum 4:

  • credit
  • mortgage
  • purchase and sale agreement
  • insurance
General conditions fixed in one agreement
Number of payments 10-15 (advance, insurance, bank credit fee, currency conversion fee, notary services, 3% for the pension fund, transport fee, registration at the SVI etc.) 1 (advance)
Number of monthly payments 4-5 (credit repayment, percentage, currency conversion fee, transport fee etc.) 3 payments in financial leasing (monthly compensation of leasing object cost, Lessor’s remuneration and service payment);
1 payment in operational leasing
Possibility of payment delay Car cost repayment Confirmed individually
Financing period 1-7 years 2-5 years
First payment From 20% (in special cases it can be 0% advance payment in case of additional guaranties and guarantors) From 0 to 50%
Minimal period of client’s work From 12 months From 2 years
Regional dependence Depends on the location of bank offices Not depends on the client’s location
Penalties A car can be a subject of tax arrest, burdening of the third parties etc.. A car cannot be a subject of tax arrest, burdening of the third parties, etc.
Service support NO AVIS Ukraine controls and pays for warranty repairs, including repairs after insurance cases and their administration
Cooperation with service stations and suppliers NO AVIS Ukraine has a wide network of partners all over Ukraine: service stations, evacuator services, dealers, tires change and car washing services, fuel stations
Support in regions NO 11 regional service managers will help your employee and provide necessary support
Administration of insurance cases NO In ordinary insurance cases employee / client’s driver provides only 4 documents to Avis Ukraine and all questions with insurance company regarding loss covering solves our service department.
Personal manager NO Each company has 2 managers (service and documents)
24/7 service support NO YES
Evacuator NO If you have any problems with car in any part of Ukraine, you can be sure that we order evacuator and deliver the car to the service station. In most cases this service is free.
Annual technical checking at the SVI NO YES
Discounts for fuel NO Administration of fuel
Car after leasing NO If you choose a car that will be delivered in 2 weeks, our company will provide you with pre-delivery car from our rental fleet.
Replacement car Impossible AVIS is one of the biggest rental companies in Ukraine. We always can provide you with the replacement car in one of the 6 regions where we have rental stations.
Financial planning Loan repayment schedule is fixed and doesn’t depend on specifics of client’s business. Leasing payments schedule can be individual for each client depending on the specifics of its business.
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