Types of leasing in Ukraine: features and advantages of each type

As opposed to a loan, Ukrainian consumers choose car leasing. It allows you to use a vehicle for a long time (up to four years). At the end of the term, you can completely buy the car and become its full owner, extend the leasing period, or return the car back. Types of leasing have their own nuances that should be studied in more detail.

What types of leasing are there?

Three types of leasing are available to Ukrainian buyers. The types of leasing can be briefly described as follows:

1. financial leasing - the most common option, in which the lessee makes a down payment, a monthly payment, and at the end of the contract can buy the car;
2. operating leasing - long-term car rental, which differs from financial leasing by the absence of redemption, upon completion of the contract the vehicle is returned to the lessor;
3. sale and leaseback - the client sells his car to the leasing company, after which he takes it back under the terms of leasing, this option allows entrepreneurs to earn additional funds for business, without completely losing the right of ownership of the car.

Each of the described leasing options has its own situations in which its use will be most effective. Everything depends on the operating conditions of the car, the desire to become its owner, the duration of the contract, etc. Regardless of the chosen type, the key is to contact a proven leasing company. Avis offers signing a contract on individual transparent terms.

Advantages and disadvantages of different types of leasing

Financial leasing is optimal because it offers several options for the development of events: returning the car to the lessor, buying out or extending the contract term. It offers the following advantages:

• small monthly payments, which reduces the financial burden;
• the monthly payment amounts set when signing the contract remain unchanged, regardless of the exchange rate, economic situation, etc.;
• small down payment;
• low credit history requirements.

Financial leasing requires the recipient to confirm solvency. The lessor buys a car specifically for leasing and is not eager to create a fleet of unredeemed cars. Operating leasing is more similar to traditional rent. In this situation, the lessee does not buy the vehicle, and the lessor assumes obligations for its insurance and maintenance.

Financial and operational are types of leasing in Ukraine that are popular among entrepreneurs. The financial method is chosen by medium and large businesses, but the terms of operational leasing are more favorable for start-up companies that are not yet ready to spend a lot on buying their own car.

Having studied all types of leasing and characteristics, you can better understand the features and find the best option for yourself. Individual terms are agreed upon for each case. Leasing is an improved alternative to a traditional loan with greater flexibility. In addition, our company offers electric cars for rent, so that the operation of the car does not harm the environment, fits into the current environmental agenda to minimize exhaust gases.