What is it, and who benefits most of car leasing
Car leasing is a particular form of a hired car and not a form of purchase. Leasing companies, in fact, provide a large fleet of cars and commercial vehicles, which customers can use by paying a sum corresponding to the use of the car for the duration of the contract.
Features
Leasing is the preferred medium by companies and commercial companies to take advantage of new means always, without have to pay for the bureaucratic aspects of car ownership, such as insurance payments, stamp and maintenance, of which deals with directly to the utility company for assistance. Car leasing is very similar to a loan. Surely you will ever buy an asset through a loan (a kitchen, a PC, a plasma tv ect ..) with regular payment of installments or royalties. Car leasing is precisely a loan, with the difference that the good that you have chosen (in this case the car) not purchased but Benefit for the period of time agreed upon at the inception of the contract. At the end of the payment of installments you can choose the most suitable solution for you, including the purchase of the car or return the same to the company for assistance. Usually, the company that offers you the loan is called the "lessor" and what do you Enjoy you the "lessee". Almost always, the lessee is responsible for the car as if it were his own, and his name appears on the documents of ownership and circulation of the car.
Parties involved
The parties involved in a lease contract are three: you, Leasing Companies and the company that sells the car. On this last subject, it is necessary to know that in reality this does not directly sell the car but sold it to the leasing companies with which often establish specific conventions.
The company providing the other hand, is the one with which be entering into the contract of "rent" and that, as with any other financial, will work to ensure your reliability, say, economic. The last person involved is you, that is, the user of the vehicle. You will pay monthly or bi-monthly rental fee, and at the end of the contract, you will have the opportunity to fully redeem your car by buying it with a final settling or returning it to the Company, or even renewing the lease perhaps with a more modern machine.
To recap: the lease can only be proposed by Banks and Financial Institutions authorized; often, however, the funding you may also be offered by car dealers, but in reality the contract always starts from a finance company.
Once we have established what are the parties involved, we must dwell a moment longer on the recipients are most suitable for car leasing because, as we shall see, it is not always convenient. The obligations which it must submit the lessee are varied and demanding and crucial first turn to more financial for more clarifications, and then assess any tax advantages.
Recipients
Generally, those who opt for leased cars are almost always professionals or entrepreneurs, that is, those who use the car for business purposes and therefore possesses VAT. Companies fact (or even companies, cooperatives or Sole proprietorships) are tax deductible up to 50% of the fee.
There is no law that prohibits a private individual to turn to a financial lease for the car, but the benefits may be questionable since, would be limited to the canon most beneficial to those offered by various financial institutions, and at the expense of ordinary and extraordinary maintenance to sustain. On the latter point, as we shall see, is there anyway to reflect, as there are various services, such as the full-lesing, exempting, in the face of a higher fee, all costs related to the ownership of ' car.
It 'also true that one of the major advantages for both the private and the Company can certainly be its capital, which, unlike the purchase should not be immobilized.
At this point, set the recipients of the contract, we go further into detail and useful but thorny issues we face as expenses, insurance, the duration of the contract, the advance and any advantages. The latter are particularly important depending on the type of contract that you pick ie if you opt for the formula for the normal or full. In fact, in the next section, we will explain in detail what are the constraints and advantages of this type of contract.
Types
Holders of VAT and private individuals, have the ability to choose, according to specific needs, two types of contract: financial leases and the full leasing. With regard to the financial model, the lessee shall ensure the thick of the car for the entire duration of the contract and arrange it personally to all maintenance costs, insurance and additional equipment (eg the ownership tax, fines, registration fee).
With regard to the costs of maintenance, be careful because many financial force you to repair your car only at the contracted garages, eye to the contract then! Regarding this last, we must say that it has a fixed term, although you still need a clarification closely linked to the figure of the lessee.
If the latter is in fact a private, in practice there is no constraint in the sense that the leasing of thick may also be of twelve months (which is the minimum period), otherwise if the lessee is a holder of departed VAT. For tax-deductable donations in fact, it is essential that the contract has, by law, a minimum of two years instead of the maximum is usually equal to six years. So if you're a freelancer and you want to download the expenses, remember that you are obliged to enter into a contract of a minimum of two years.
Now consider the full leasing contract. This type of contract, such as specifying the English term, is total, ie it includes all the services that are excluded from the finance leases of which we talked about earlier and which may include a variety of additional services such as roadside assistance, replacement vehicles and tire service. Some companies, however, offer, even if it is a full lease, only basic services, which usually include the possession charge, the ordinary and extraordinary maintenance and insurance.
The lessee is given the opportunity to choose whether or not to include other services, such as the replacement of tires or car. Among the advantages of full should not be overlooked, especially for holders of VAT, the convenience of having the financial details of the royalties and fees for services on a single bill to better manage their accounts.
Agreement
In the previous section we have already said that the duration of the contract varies from a minimum of 12 months (for individuals, and minimum of two years for those with VAT) up to a maximum of six years which may be extended. We also mention that the main feature is the ability to pay through a fixed fee, the rent of the car. In this regard we must emphasize that the fee is to be paid monthly, and very often, however, some Financial offer customers the opportunity to opt for the installment payment every two months.
Obviously, if you choose the formula your full monthly or bi-monthly shall be increased in relation to the additional services that you will require. The first installment, called initial settling payment, it is always the highest and is almost always equal to 10% of the value of the car. With regard to the ransom, as mentioned earlier, you have the opportunity, at the end of the contract, to redeem your car, that you can purchase the property based on the price initially agreed.
In this regard, some leasing companies offer low and high ransom. Usually solutions to club Alto, differently from the traditional leasing, allows you to have monthly fees but lower amount upon redemption of your car, the value will be very high.
When you sign a lease, you have an obligation to insure the vehicle. Many leasing companies enter into agreements with insurance companies that undertake not to modify the conditions of the policy but at the same time are not required to pay damages without the consent of the Financial. Also, be very careful, because very often the Financial require you to insure the car for theft and fire then, unless you had not already planned to do so, you should read carefully the terms of the contract.
Advice
In this session we will try to summarize what has been said earlier, trying to focus your attention on some points not to be overlooked at the time of entering into a lease agreement. First schematizziamo briefly what would be the pros and cons of this financial solution.
Merits
not fixed your capital as you would buying a car.
At the end of the contract you can return the car "worn out" and are not subject to the depreciation of the vehicle in the event that you need to sell it as you would your car.
With the full leasing you do not have any kind of headaches related to maintenance or payment of fixed costs (insurance, road tax, etc. ..).
If you have a VAT, there is a possibility of deduction of expenditure incurred.
Defects
Documentation substantial to present.
Obligation to insure the car for theft and fire (this only happens with some companies).
holder who is not a VAT can not enjoy tax benefits.
Consider additional costs such as those of investigation can be very high and that consist in the payment of a fee to the company that is used to assess your economic reliability.
The time required for approval of the loan can be very long.
Ability to driving ban for other people:
Obligation to apply only to the garages.
Do not exceed the mileage agreed by contract.
In some contractual clauses is not expected that the car can be driven by others if not by the lessee. So be careful! Before signing the contract remember to ask if there is this constraint. Another factor not to be overlooked to avoid be at fault with the company, is to determine if indeed you are bound affiliated dealerships use of the car in case of breakdown. Make sure it is of paramount importance because you might run into unpleasant penalties. The last point on which to dwell, but of no less importance, indeed, is the mileage. Most of the time the contracts are entered into on the basis of mileage. If you exceed that agreed initially you are obliged to pay a penalty. Mind you, however, that the opposite approach is not provided, that is, if you make fewer miles than those agreed upon, there is no refund for you!
----------------------------------------
Translated via software
----------------------------------------
Source:
Italian version of ReteArchitetti.it