Is it financially interesting to buy a leased car in 2022?

By 2020, 2021 was once again very disappointing for sales of new vehicles in France. Only 1.6 million registrations were registered during the 12 months against 2.2 million in 2019. A trend that will continue at the beginning of 2022, but which may benefit a market that is becoming more and more democratic in our everyday life. : leasing. Car rental has for several years been a very advantageous solution economically. But is this really the case? Here are some answers …

This is how leasing works

The principle of leasing is as follows: a bank or credit institution buys a vehicle for a professional or an individual who undertakes to pay monthly rent to use the vehicle for a given period. It is important to understand that the financial institution is the owner of the vehicle. The duration of a lease is variable (generally between 3 and 5 years), which affects the size of monthly payments to be paid: the more the contract is spread over time, the lower the rent. This is a first element of answer to our question, which will delight those who want to save money in the long run.

Another important element when drawing up an estimate or a contract, it is possible to add a contribution. By the same token, the more important the contribution, the weaker the monthly payments: a real calculation must be made!

It is interesting to note that agents and leasing specialists very often gamble on the size of the monthly payments to show extremely low prices: a good marketing argument that actually hides a contract with a significant contribution! Therefore, always check this three details before embarking on a lease: the number of kilometers per year, the size of the contribution and the duration of the contract.

Our advice: observe the differences between leasing offers with comparators. You will then notice it the best leasing companies are often the ones with the lowest rent without contribution !

Can a lease be rejected?

Financial institutions can absolutely refuse to lease to a customer. In fact, the bank or credit institution provides leasing according to its own terms, particularly related to the consumer’s financial capacity. If the bank does not have sufficient guarantee for the solvency of a file (especially for a customer’s ability to pay the rent each month), it does not commit and the file will be rejected. This is especially regularly the case for individuals applying for leases while under a fixed-term contract (CDD), or for companies that do not yet have two balances on their credit (ie a minimum of 2 years of existence).

What are the ideal conditions for leasing?

As we have seen, financial institutions are quite capable of rejecting a file if it is not reliable enough. Conversely, some cases are much more attractive to finance organizations: individuals on permanent contracts (permanent contracts) who are no longer on probation or professionals whose business has been in existence for more than two years. The monthly income must be much higher than the lease rent: In general, companies ask for a net salary 3 times higher than the monthly payment for the car.

How to find the best leasing offers?

As with any market that is experiencing very good momentum, players are evolving day by day and their numbers are changing. The leasing world is no exception. Having many players in the market has the advantage that it creates competition for prices and a constant improvement of prices: a gift from god. But beware of these increasingly tempting and attractive offers: Many will present you with unlikely prices, and which will eventually double or even triple once the estimate is made.

Our advice? Do not look for leasing from low-cost carriers that offer you the “lowest prices on the market”, but rather look for a car leasing specialist, a financing expert who will offer you personal support. The reason ? It is very clearly better to work with finance professionals who really know how to get you the best prices and offer you maintenance, assistance, tires, etc. services, rather than working with marketing experts!

LOA or LLD, what is the best solution?

Leasing with option to buy (LOA) and long-term leasing (LLD) are two types of leasing that have quite interesting features.
The first allows the tenant to put a purchase option on the vehicle, and this from the request for a quote on the car. A LOA generally lasts between two to five years. It is possible to integrate a contribution at the beginning of the contract, as we have seen before. The size of this contribution can be adjusted and generally represents between 10% and 20% of the purchase price of the vehicle. When the contract expires, the tenant has the opportunity to buy the car so that he becomes its final owner. Very often in this kind of case the car is sold at its original price.

Another significant benefit of LOA is that it is a good way to avoid paying fines if they prove to be expensive for him. In fact, some rules must be observed when returning the car. The latter must be returned in good condition and the renter must also respect the predefined mileage. Otherwise, he pays (of course) compensation to the landlord.

With long-term rent (LLD), if they can not buy the vehicle back, the tenant has lower monthly payments than with a LOA. Also in the event of a breakdown, repair and maintenance of the vehicle as well as its assistance are included in the lease. LLD is clearly suitable for people who change cars very regularly and who want to have a new vehicle with each contract.

Is leasing financially attractive?

In conclusion, LLD is undeniably in the short and medium term a very interesting solution economically (and probably the best on a very large number of vehicles). It is perfect for those who frequently change cars.

LOA, on the other hand, is a sustainable solution in the medium term: If a person does not question whether they are interested in buying a car or not, and if they want to choose rental, then this option is the best because it leaves the possibility of taking the vehicle back at the end of the contract.

Purchasing is the best solution in the very long term: If a person is sure to keep his car for more than 5 years, then the calculation of the impairment will very clearly get better this way.

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