In 47% of Russian families have a car. according to opinion pollFor eight years, this figure rose to 10%. In 2006, the car in the family was only 37% of respondents.
According to the committee automakers "Association of European Businesses»(AEB), nearly three million new cars were sold in 2013 in Russia. In 2014, sales decreased by 8%, but the demand is still there.
Plans for the acquisition of four-wheel "iron horse" are more likely to build the students (23%) and housewives (25%). No wonder that every second new car is purchased on credit in Russia.
The popularity of car loans is explained by the fact that save and buy cars for cash is difficult. But there is another financial instrument, which makes the dream of the car sbytochnoy. This lease.
Car leasing - popular in the US and Europe, a way to purchase a car. There are up to 30% of the cars purchased by individuals, are leased. In Russia, this figure is negligible. Why?
Let's analyze the mechanisms of car loans and car leasing, weigh the pros and cons and try to understand what is still profitable.
Car Loan
Car loans - interest loan is issued by a bank or other lending institution to an individual to purchase a vehicle.
This popular form of consumer credit. Features:
- This target credit: the money can be spent only on the purchase of cars.
- This mortgage loan: the car remains pledged to the bank before the payment of the loan.
Legal regulation of car loans is carried out by the Civil Code (Chapter 42), the Law "On Banks and Banking activity "(from 02.12.1990), the Law" On consumer credit (loans) "(from 21/12/2013) and other regulatory acts.
types of car loans
To buy a car, there are various loan programs:
- "Classic" (Read more below);
- Express loans: the simplified registration procedure, but high interest rates;
- Loan and repurchase (BuyBack): part of the loan is "frozen" and is paid at the end of the period of validity contract or by the borrower, or a car dealer, provided the proceeds credited to the purchase of a new cars;
- Trade-in: the exchange of the old car on new with surcharge. Cost b / a car goes into the cost of the new Ladder;
- Factoring (free credit): Payable 50% of the vehicle, the remainder is paid in installments;
- Loan with no down payment: for lending from the car dealer lack the down payment can be a bonus.
In addition, as certain areas we can talk about loans for used cars and loans without insurance.
The mechanism of car loans
More often resorted to the classic car loans. Consider its circuit.
Do you want to buy a car. Money for a new "iron friend" no. You go to a bank or to a credit broker.
Mortgage broker - commercial organization, which is the intermediary between the borrower and the lender (bank or car dealer). It assists in the design and approval of car loan.
Also, as the creditors may make dealers. They provide loans from its own resources or cooperate with the banks.
You choose the bank (or a car dealer), study credit conditions. Determine fill out the questionnaire and collect documents. The bank should make sure that you will be able to repay the loan (ability to pay), and you have no other debts (credit history). Within days, the bank thinks, give credit or not.
If the decision is positive, the bank and the borrower (now you) enter into a contract. It specifies the time, interest, the first payment, the rights, duties and responsibilities of the parties.
You buy a car. Sometimes banks recommend a particular car dealer, sometimes build cooperation with the interior chosen by the customer.
All efforts on the design of the car fall on your shoulders. Also, most of the credit agreement provides for insurance at the expense of the borrower. And not only CTP but hull.
You are a lucky motorist! The main thing - carefully to repay the debt and do not forget that you are even though the owner, but the car is pledged to the bank. You it is not entitled to sell, donate or exchange. And if you will come hard times and pay on the loan will be nothing, the bank (car dealer) will take your "swallow".
Pros and cons of auto loan
Car loans, as a financial instrument has its own advantages and disadvantages.
Pros:
- You can have a car without capital. Buy a car for cash may be one, and save for a long time and does not always work.
- Big choice. You can buy what you like, not what the missing money.
- A variety of loan programs: you can choose the most advantageous for himself (with a minimum period or, for example, without a long clearance).
Minuses:
- Complicated procedure. Strict requirements for the borrower.
- Rise in price of cars. Will have to pay interest plus mandatory insurance.
- car loan.
Car leasing
The word comes from the English leasing lease - «rent". But in the Russian law is not identical lease rentals. We do this view lease. In them, one party (the lessor) invests in the purchase of the property, and the other (the lessee) accepts the financial services and uses the purchased property.
Leasing legal relations regulated by the Civil Code (Chapter 34), and the Federal Law "On Financial Rental (Leasing)" from 29.10.1998, the
The subject of the lease can be any non-consumable items (excluding land), including vehicles.
The mechanism of car leasing
Car Leasing - is the acquisition and transfer of vehicles for temporary possession and use for a fee based on an agreement between the lessor and the lessee.
The general scheme is as follows.
You want a car. No money to buy. You apply to the leasing company. Telling it what kind of car would like to have, and show some papers.
In contrast to processing the loan, the minimum package of documents. As a rule, it is a statement, passport and driver's license. From a procedural point of view, leasing is much easier lending.
Between you and the leasing company, the contract is concluded. From this point on you - the lessee.
Currently, the lessee can be both legal and natural persons - non-entrepreneurs.
Until 2010, the Law "On Leasing" contained a clause, according to which the leased asset could be used for business purposes only. The leases were taken mainly buses, trucks and agricultural machinery. Finance lease passenger transport virtually non-existent.
But now there are leasing programs for citizens, which they can use to get in any car. Currently leasing in Russia for individuals engaged in only three companies.
After the conclusion of the contract the lessor buys for you "dream car" and sends it to you to use.
Keyword - use. The owner of the car is the lessor. In this regard, it was he responsible for the registration of the machine, passing inspection, and other troubles.
It should be noted that all of the additional expenses incurred by the lessor (insurance, taxes, etc.) ultimately pays the lessee, as they are included in the lease payments.
Lease payments are usually less than the payments on the loan. The fact that they are calculated net of the so-called residual value.
Residual value - is the redemption payment for the car, you must pay the lessee at the end of the leasing period, to get the car in the property.
Also the value of payments affected by the presence / absence of the advance and its size. In other words, the more you will pay at the beginning and at the end, the less will have to be given monthly.
During the lease term (from one to five years) you - a happy car enthusiast. The main thing - do not forget to make monthly lease payments and remember that at the end of the contract you will either have to buy back the car or return it.
types of car leasing
There are two car leasing scheme:
- Leasing with transfer of ownership. When the leasing period comes to an end, you will be able to become full owner of the car, buy it from the lessor on the residual value.
- Leases without transfer of ownership. When the leasing period comes to an end, you will be able to return the car to the leasing company and choose another, signing a new contract.
Pros and cons of car leasing
Car leasing frees from many troubles. For example, do not need to spend time searching for the seller and the car decoration. And it's not the only benefit.
Pros:
- A more flexible payment schedule. As a rule, they are lower than payments on the loan.
- Simplified procedure of collecting the documents and sign the agreement.
- The ability to update the car every few years.
Minuses:
- Auto leasing is in the ownership of the company. At the slightest problem with payments, and the financial difficulties of the lessor, it may be deleted.
- the vehicle user can not take it to the sublease.
- Individuals do not have tax incentives on car leasing.
Automotive arithmetic
Knowing the mechanisms of auto loan and car leasing, still remains the main question: "What is more profitable?".
To answer this question, we asked the company "Leasing-Trade»Compare spending on leasing for individuals and car loans under the same conditions. Here's what happened.
"It was chosen property - car Toyota Corolla 2014 release, the cost of 690 000 rubles (sedan; Engine power - 1.6; 122 hp).
Car loan calculations we took the sample: the loan amount 690 000 rubles, an advance of 20% or 193 800 rubles, the period of 36 months. The basis for the calculation of auto loan took a well-known bank (call it X). The interest rate on its loan program with a standard set of documents is 15% per annum. The calculation was carried out without taking into account the financial protection programs, CTP, Hull and additional costs.
leasing calculation for individuals promoted on the basis of a proposal of one of the leasing companies (call it Y). The monthly payment is not included CTP, Hull, as well as mandatory and related payments (vehicle tax, vehicle registration in the traffic police, the annual MOT, etc.).
car maintenance costs will be roughly equal in both cases, are mandatory and are calculated separately.
CASCO and CTP was made based on the following parameters:
- CTP: 5500 rubles; region - Kazan; driver's age - older than 22 years; driving experience - more than 3 years; Car power - 122 hp For one driver admitted to management.
- Hull 86 000 rubles; place of registration of the vehicle - Kazan; information about a natural person: a man, 30 years old, marital status - married, one child; driving experience - more than 6 years of age, accident-free driving. For one driver admitted to management.
Car Loan | Car leasing | |
cost of the car | 690 000 rubles. | 690 000 rubles. |
Interest rate | 15% | No, because the car is returned |
Term (months) | 36 | 36 |
The initial payment of 20% | 138 000 rubles. | 138 000 rubles. |
type of payment | uniform | uniform |
Monthly payment | 19 135 rubles. | 11 790 rubles. |
Overpayment Interest | 135 000 rubles. | No, because the car is returned |
Total payments = amount of payments under the contract (loan / lease) + Advance | 688,860 + 138,000 = 826,000 rubles. | 424,440 + 138,000 = 562,440 rubles. |
Security deposit | 0 | 0 |
CASCO insurance | 86 000 rubles. | 86 000 rubles. |
CTP | 5500 rubles. | 5500 rubles. |
Vehicle registration in the traffic police | 2000 rubles. | 2000 rubles. |
Transport tax | 4270 rubles. | 4270 rubles. |
The minimum income to buy | 31 900 rubles. | 31 900 rubles. |
The market value of the car at the end of payments | 539 000 rubles. | 0 |
Pre-payment redemption | missing | 441 000 rubles. |
Expenses for purchasing a car in the property | 826 000 rubles. | 562,440 + 441,000 = 1,033,440 rubles. |
»
Thus, if we consider a variant in which the lease does not provide for a transition car customer property, the monthly payment on a lease agreement will be below 7345 rubles (ie, 38%). Expenditure on property insurance will be equal in both cases, and are mandatory.
But if we take the situation in which the car is purchased with a view to long-term (5 years) of operation, and in the case of a lease of a natural person and subsequent purchase a property, then, of course, auto be more economically feasible and inexpensive way to obtain car. Since the acquisition costs (excluding insurance and mandatory expenses) will be at the car loan 826,000 rubles to 1,033,440 rubles for the car leasing. "
In this case, our expert draws attention to the fact that:
- by mass and popular brand (Kia, Opel, Nissan, Mitsubishi, Chevrolet) and premium (BMW, Audi, Mercedes-Benz, Porsche and others) discount leasing companies can be an average of 10%, which allows you to make calculations much lower (often twice) than on car loans.
- for premium customers with high-income countries will be profitable leasing service and comfortable as possible in the payment include insurance, taxes, maintenance and car repairs.
What to choose?
After making changes to the Law "On Leasing", many experts predicted a boom of leasing transactions with individuals. After all, it would seem, the benefits are obvious. We do not need guarantors, fewer nerves in the design, and most importantly - the lease payments less burdensome for the family budget. But the boom did not happen.
Comparative table of car leasing and car loans:
Car Loan | Leasing for Individuals | |
Property | New and used cars | Only new cars of foreign manufacture, in addition to Chinese cars |
financing term | 12-60 months | 12-36 months |
Prepaid expense | Banks rarely give out auto loans with no down payment. Minimum advance from 15% | Advance payment from 0%, but leads to higher monthly payments. Minimum advance from 20% to 49% |
The package of documents | Standard: passport, certificate of income 2-PIT, a copy of the work book. Short package more expensive rates | Standard: passport, driving license (sometimes also income statement 2-PIT) |
Car insurance | Mandatory annual CTP insurance, CASCO. Optional voluntary life and health insurance, financial protection programs. Perhaps the inclusion of Hull in payments | Mandatory annual MTPL insurance. CASCO cover is optional, but it leads to higher monthly payment |
Property rights | The car is property of the client, but is pledged to the bank | The car is owned by the leasing company and the customer is transferred to the temporary use of the contract |
processing speed | You can buy a car on credit in a short period of time with a minimum package of documents on the program "Autoexpress". As a rule, interest rates go up by 2% | You can buy a car in a short time in the leases with a minimum package of documents |
unlimited mileage | Is not limited | A limited run of 25 000 km a year |
Other restrictions | – | Check the vehicle abroad only for official permission of the leasing company |
Other facilities and services | – | The lease agreement may be included full insurance, annual inspections, seasonal tire storage of tires, especially accounting, payment of vehicle tax and so on. All this leads to higher monthly payment |
Premature partial or full repayment | The loyal banks are usually not limited by the amount and timing | Strictly no earlier than 6 months |
redemption value | Missing | Is corrected based on the vehicle state can be calculated previously at the stage of the agreement |
seizure of property | Through the courts in the event of a delay in the contract | Under the contract the property owner is a leasing company, in the event of default under the contract withdrawal is carried out without a court order |
»
According to experts, the main reason for lack of demand for leasing for individuals in Russia - in the tax system.
In the United States, where car leasing is very popular, there is a so-called "financial statements of the household." That is, the budget of the private entity is regarded the same as the company's budget. In this connection, taking the car to the leasing, the citizen receives the same tax benefits as a businessman. In Russia, the return of VAT can only be legal entities. For them, leasing is really beneficial, as it allows to minimize taxes. For individuals, VAT is included in the leasing company monthly payments.
In addition, a significant difference in the psychology of domestic and foreign motorists. "The car is not mine - it will take away a little, and cried my money". Such reasoning is stopped many who are eyeing the car leasing. Indeed, the leasing company to reclaim the car if you have problems, do not even need to go to court. Paying the loan, the person perceives this as a contribution to their property.
Thus, choosing between car loans and car leasing, it is important to thoroughly understand their needs. If you need a status machine, and you want to regularly update the car, then most likely, you will approach a finance lease without compensation. If you want a reliable "iron friend" for many years, the loan will be more profitable.
Tell a friend about this article and express your opinion in the comments. What, in your opinion, is more profitable: car loan or car lease?