Leasing is a financial product that allows you to finance the acquisition of movable assets. Most often it is a car lease, but machines are no exception. The parties to the contract are the lessor and the lessee; until the obligation is repaid, the lessor is the owner of the subject of the contract. Only after the obligation is fulfilled will the ownership change, which in practice means, for example, that the car will be yours after the lease and the ownership will be transferred.
Leasing is characterised by a link to the financed object
Leasing is a specific form of renting, because at the end of the lease the object of the lease becomes the property of the lessee. The lessee must accept the terms of the contract for the disposal of the financed object, for example, that the vehicle will be used only for personal purposes, for the entire duration of the lease.
What types of leasing do we know?
- Financial leasing, which is based on the provision of financing. At the beginning, the lessee pays an extra payment, called a down payment. Maintenance, insurance, servicing and other things are the responsibility of the lessee, who can buy the item and become its owner at the end of the commitment.
- Operational leasing, which can be compared to renting. You will be able to use the item for the duration of the contract, but things like maintenance, insurance, repairs, etc. go to the leasing company. The latter also owns the thing for the whole time. When the operating lease ends, you return the item to the leasing company, but they may offer you the option to buy it back.
- A special type of lease is a leaseback, where the company first sells the future leased item to the leasing company and then leases it from them. At the end of the commitment, the leased item passes back to the lessee.