Loans and leasing

How is an operating lease different from a financial lease?

Financial leasing is a type of leasing in which the customer pays the full value of the car in monthly installments and becomes the owner at the end of the lease term. During the leasing period, the customer fully covers the value of the car and pays interest. At the end of the financial lease term, the client receives a deed of termination of the covered liability and re-registers the asset in its own name. Private persons may conclude only financial leasing.

Operating leases are essentially long-term leases. During the lease period, the customer pays the rent, which is the difference between the purchase value of the car and the determined residual value. During the term of the contract, the customer pays only a part of the price of the car, paying for its depreciation or amortization. In the case of a finance lease, the car does not automatically become the property of the customer at the end of the lease term. At the end of the contract, the customer can redeem the car for its residual value (with an additional redemption fee), transfer the redemption right to a third party or return it to the seller.

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