In modern realities, it is virtually impossible to imagine a business that can fully operate without the use of a vehicle. However, entrepreneurs do not always have the opportunity to purchase a car for their own needs. Many businessmen do not want to take a car on credit, as they are afraid of such cooperation with banking organizations. In this situation, a leasing or lease agreement can come to the rescue. Before renting a car, you should familiarize yourself with the difference between renting and leasing. Let's talk about this next.
Many people believe that car leasing and leasing are identical concepts. However, this is not entirely true, since there is a certain difference between these documents.
If we talk about a lease agreement, then this document is concluded between the head of the company and the lessor during the transfer of movable property. The terms of the agreement stipulate that the host must pay a prescribed amount of money regularly for the use of the machine. The period of such a transaction is determined individually. When the deadline comes to an end, the parties can decide to extend it. If the lessee does not want to operate the vehicle in the future, he returns it to the lessor organization.
Three parties take part in the process of signing a lease agreement:
Usually, the agreement is concluded in a standard form. A company wishing to get transport for temporary use uses the services of a leasing organization. The latter, after agreement with the lessee, chooses a car and buys it from the seller for its subsequent transfer to the lessee.
Note that the leasing agreement may provide for the presence of other parties. These may be:
The condition of this financial document implies that the lessor regularly pays a certain amount of remuneration for the use of the car, and after the completion of the contract, he receives the right to buy the vehicle at its residual value.
If we talk about the similarity of these two types of contracts, then it is worth highlighting the following factors:
Comparing the differences between these forms of contracts, it is worth highlighting the following features:
If we talk about a more advantageous type of agreement, then everything is ambiguous here. If the company plans to purchase a car but does not have enough money for this, then leasing will be more profitable. If the company needs a car for a given period (when its transport is being repaired or the company's activities do not provide for the constant use of the car), then in this situation it is better to rent a car. A simple rental can be arranged very quickly.
Each legal entity (natural person) is obliged to decide for itself which type of agreement to give preference to. Before that, you just need to scrupulously weigh all the advantages and disadvantages of these two transaction options.