When leasing, a repayment term and a fixed fee are set in advance.

There are two variants to leasing a product: financial leasing and operational leasing. financial leasing resembles hire-purchase and operational leasing looks more like renting.

Leasing a Car

Leasing a Car

Leasing is often a good option if you want to buy a car. The Auto Loan is concluded if you do not immediately have sufficient credit to make the purchase in one go. Lease cars are available everywhere and a good option to have a car and to pay it off in installments. If you want to lease money, first request a free quote. Preferably also with different lenders, so that you can compare the offers with each other.

Compare

Compare

Before you want to lease it is advisable to compare different lenders. There are many banks that offer a lease. The interest rates can differ greatly per loan, including the conditions per bank. Lease an occasion with a good financial plan, so that you can buy the lease car at the end of the payment term. Lease cars are often used for financial leasing.

Financial leasing

Financial leasing is very similar to a lease purchase. The person taking out the loan only becomes the full owner once the fully borrowed amount has been repaid and uses the purchase option. The purchase option means that the lender offers the product for sale at a symbolic amount.

The person taking out the loan must fully repay the agreed amount within the agreed period. Otherwise, the lender may withdraw the agreement. This means that the credit borrower will not come into possession of the product and must still pay back the agreed amount.

Operational leasing

Operational leasing is more like renting. With this form of leasing, the lessor remains the legal and economic owner of the leased product. It is possible to cancel the agreement during the lease. You also use the operational leasing often for the short term, in contrast to the financial leasing. With operational leasing, a fixed interest amount is paid per month. With operational leasing you therefore have the product without it actually being yours.

Where is the difference?

The major difference between financial leasing and operational leasing is the purchase option. With financial leasing, it is possible to purchase the ultimately leased product. With operational leasing, you return the ultimately leased product.

Advantages of leasing

The big advantage of leasing is that the product is immediately available to you. Regardless of whether you will buy the final product via the purchase option (financial leasing) or return the product (operational leasing).

Disadvantages of leasing

Until the final purchase option is paid (in the case of financial leasing), the lessor remains the legal owner of the product and the lessee is the beneficial owner. With operational leasing, the product is (almost) never owned.

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