About leasing

Leasing is one of the most effective financial tools aimed at fleet renewal that helps legal entities purchase vehicles at lowest initial expenses.

The general scheme of leasing is quite simple. A leasing company (lessor) buys out a required vehicle, deals with its registration and insurance and delivers it to a client. The client (lessee) covers only a part of the vehicle’s cost. The rest is divided into equal monthly payments throughout the long-term period ranging from one up to several years. At lease-end the client is entitled to top-priority right to purchase the vehicle at its residual value.

In comparison with other forms of vehicle purchase leasing has a number of advantages:

• Cost cut-out and time-saving
• Profit tax benefits: leasing payments apply to Total Costs and thus reduce base of assessment
• Simple and favorable co-operation scheme: no credits, pledge, notary certifications
• The lease-object is enough to guarantee the agreement. Concluding a leasing contract is much easier than receiving a bank credit. By credit the pledge often exceeds the credit sum two or more times.
• Increase of credit tax. At lease-object delivery by finance lease of commercial vehicles the lessee records VAT on the vehicle’s cost to tax credit.
• A convenient schedule of payments considering the specifics of your business
• Your support in business. The leasing company assists in search for an optimal variant and also undertakes preparation of all necessary documents for registration of the vehicle, payment of all taxes and dues, holds planned technical maintenance as well as provides insurance and administration of repairs and insured accidents.
• The leasing terms are equated with payback period. Payment is executed on gradual basis and out of means received from the lease-object operation.
• At lease-end you can buy out the vehicle at residual value, exchange it for a new one or return it to the Lessor.
• An opportunity to preserve investment appeal of your company and existing credit lines