Wondering how consumer car leasing works? Be sure to read this!
A few years ago, leasing became incredibly popular among business owners. Thanks to this way of financing, both large companies and sole traders could secure a much higher-class car. Now you can take advantage of it too, consumer leasing is a solution that makes your dream of the perfect car come true. What does car leasing involve, and can you use it for a used car? Here are the answers!
Consumer leasing, what is it?
Before we tell you what benefits consumer leasing offers and why it's worth it, we first need to look at what it actually is.
**Consumer leasing **is a service dedicated to private individuals, meaning those who don't run a business. It's a form of financing based on making a product, in our case a car, available without the need to buy it. What does car leasing involve? To put it simply, it's a way of combining elements of a loan and renting a vehicle, with the option to buy it out later. It requires a down payment from the prospective buyer, but not as large as in the case of an outright purchase.
How to lease a used car?
A growing number of manufacturers and dealers have models in their range that you can easily purchase in this form, for example,Skoda has been offering consumer leasing to its customers for years. However, that's still a new car, and unfortunately its market price drops the most in the first months of use. That's also a reason why drivers more often opt for second-hand vehicles.
How to lease a used car? Is it even possible? Yes! More and more platforms (e.g. Car&More) offer used but also verified vehicles. A Skoda like that on consumer leasing will be significantly cheaper, and you still keep the flexibility that this way of buying offers.
Car leasing terms
As we mentioned earlier, this form of financing is a flexible solution. You can adjust your consumer leasing instalment to your means and budget. Together with the lessor you agree how long the contract will last. Most often it's 24, 36, 48 or 60 months. Once this period is over, you can buy out the leased item for a suitably reduced sum. **With Car&More, you already know the buyout price on the day you sign the contract! **
The biggest advantage of this solution is the lower down payment. At the start you can pay considerably less than if you were obliged to hand over the entire sum. An example? For a used BMW X3 from 2018 you only have to pay 31,000 PLN, and you cover the rest later in the leasing instalments. If you decide to keep the car after the contract period, you'll pay a much smaller sum than if you were searching for direct-sale offers.
**At Car&More we offer consumer leasing for used cars. Check out the offers today and handle the formalities without leaving home. **
The Polish market
In the first quarter of 2022** the car leasing market was worth as much as 3,554 million PLN**! This enormous sum is almost 8% higher than in the first three months of 2021. Passenger cars make up its largest part, the ZPL values it at 1,847 million PLN. As you can see, more and more people in Poland are turning to alternatives to a traditional purchase. Why? A definitely** smaller down payment makes it possible to acquire a better car at a lower price**. On top of that, many companies (e.g. Car&More) offer the option to return the vehicle once the contract ends.
Interestingly, consumer car leasing isn't a new solution. Customers on the Polish market have been able to use it since 2011, that's already more than 10 years! Despite this, awareness is still low, and many people are wary and choose to buy a car with cash. Leasing is especially popular among companies, because it brings benefits in the form of tax breaks, and more specifically the option to deduct VAT. What does it offer individual customers? Check below!
You take out the lease, the specialists handle the rest
Often, even with used-car leasing, you have more benefits than when buying from a private owner. At Car&More you can insure the vehicle on the spotchoosing the full package, third-party liability (OC), comprehensive (AC) and personal accident (NNW) insurance. On top of that, you receive a 12-month warranty. You don't have to worry about faults or problems that crop up after buying a used vehicle!
Consumer leasing, is it worth it? Yes!
You're probably wondering whether it's worth going for such a solution. It certainly is. If you have adequate creditworthiness, you'll get consumer leasing without major obstacles. The formalities aren't complicated, at Car&More we take care of most of them. It's a great solution for people who don't want to spend a large sum of money at a given moment but still want to enjoy a new (or used) car.
Advantages of consumer leasing:
Simple approval rules, at Car&More we keep the formalities to a minimum.
The option to give up the car once the leasing contract ends, you don't have to buy it out!
A lower instalment than with a loan.
Often an additional package of benefits is offered too, e.g. a warranty or an inspection.
A smaller down payment than when buying the vehicle.
Consumer leasing or a loan? Learn the differences and decide
People who don't have a sufficiently large amount of cash wonder: consumer leasing or a loan. Both options have their pros and cons. You can't clearly decide which one is better, it depends on your needs and expectations.
On the basis of a civil-law contract, the lessor allows you to use the chosen vehicle for a fee set in advance. This is the most important difference between a loan and leasing, namely ownership.** With a loan, you are the owner of the vehicle; with leasing, it's the lessor**. For many people, the lack of formal ownership of the car is a major obstacle, much like when renting an apartment, for example.
Feel that consumer leasing isn't the solution for you? At Car&More we offer both this option and support with financing through a loan. Get in touch with us and we'll choose the right form, so you can soon enjoy a new car.