When planning to buy a vehicle, many questions arise in the consumer's mind. And we're not just talking about the model, price, year, or color. One of the biggest concerns is how the vehicle will be acquired, and even with so many options, car leasing is still one of the best options for those who want to have a car in their garage. 

As we know, today there are different ways to buy a car.

FinancingConsortiums, secured loans, installment payments via promissory note, and even bidding directly on a car at a vehicle auction are options used by those who wish to buy a car. 

Even though it's becoming less common, car leasing is a positive way to acquire a vehicle that combines renting and financing, but isn't actually one or the other. 

The automotive market today offers various business options for acquiring a new or used vehicle. 

Knowing each of these options is essential to making the smartest decision when making a purchase.

Today we're going to show you everything and more about car leasing!

If you're looking to buy a car and are researching different options, today's reading is essential.

Let's go check it out!

Car leasing is a sales practice recognized by the Central Bank as a commercial lease.

In reality, it's a type of agreement between a bank and a dealership where the buyer is the main beneficiary. 

Put simply and simply, leasing is like renting a car that a bank offers to some of its clients. 

But at the end of that period, the bank gives the customer the option to buy the vehicle. 

When signing a leasing contract, the buyer takes possession of the vehicle and can use it by paying a monthly installment. 

And here's an important point: the car is registered in the bank's name, and that means... It is not possible to sell. The vehicle before the contract expires. 

Because it has its own rules, leasing is not considered financing, but rather a rental agreement with the option to purchase. 

If, at the end of the contract, you choose to keep the car, you would have essentially financed it through leasing. 

Like any type of transaction, car leasing has certain rules that must be followed by both the buyer and the financial institution. 

They are:

All types of vehicle leasing have a minimum duration of 24 months or 2 years, which can be extended up to 42 installments. This depends on a mutual agreement between the parties.

It is the borrower, in this case you, who determines the model, color, and year of the car, but the vehicle remains registered in the bank's name. As we said, the monthly payment is like a form of rental for the use of the vehicle;

The residual value, which is the remaining amount needed to pay off the car after the rental period ends, can be agreed upon in different ways;

The customer can choose, for example, to include the residual value in the installments through interest, or they can pay the difference to receive the vehicle at the end of the pre-fixed agreement;

THE liability with insuranceMaintenance and transfer fees are the responsibility of the user. As you know, the transfer fee is necessary to transfer the car to your name, should you choose to keep it. 

There are currently three different types of leasing on the market: operational, financial, and leaseback.

We'll show you the differences between each of these types now. 

In operating leases, the lessor bears the maintenance costs of the products. 

The lessee may choose to terminate the contract at least 90 days after its commencement, with prior notice to the company or contractor. 

Financial leasing is very ssimilar to renting, with the distinguishing feature being the possibility of purchasing the property at the end of the contract, for a pre-established price. 

Car leasing is based on this type of negotiation. 

This last type occurs in the business environment, that is, it is used when a corporation needs working capital. It sells its assets and rents them back from the lessee. 

Car leasing is a business that offers a number of advantages for those who choose it. The main points in this case are:

Because it doesn't have IOF – Tax on Financial Transactions – the installment amounts are lower;

Possibility of financing the full value of the vehicle. without needing to make any kind of down payment.;

A higher chance of approval compared to other procedures for purchasing vehicles. This is because the bank holds possession of the car, guaranteeing its repossession in case of non-payment. 

Because of the security for both parties, the interest rates in this type of transaction are lower;

Unlike a consortium, the person leaves the dealership with the car immediately after signing the contract. There's no need to wait to be selected. This is seen as a major advantage for those in a hurry.

And like any other type of business, vehicle leasing has some aspects that may not be advantageous. These are: 

As we've discussed before, the car is not registered in the buyer's name during the contract. This is the guarantee the financial institution has in case of non-payment.

During the term of the contract, which is at least two years, it is not possible to sell the car;

To actually acquire the vehicle, the buyer needs to wait for the contract period to end, so that the lease ceases to be in effect and they can start paying for the car as their own. 

Although it's a characteristic of other types of business involving the purchase of vehicles, in leasing, the car, with interest and inflation adjustments, ends up being more expensive than the initial value. 

Still talking about value, it's important to keep in mind that vehicles depreciate over time. Therefore, since a leasing contract lasts at least two years, it's possible that when the vehicle is purchased, it will be worth significantly less than at the beginning of the agreement. 

Although it's not a very common option, car leasing is still a viable way to buy your own vehicle. 

As we have shown, this is an option that has advantages and disadvantages. 

Therefore, it is up to you to evaluate the pros and cons of this type of business before signing the leasing contract, since once the contract is signed, you will be bound to it for at least two years. 

If you're looking for a functional and rational vehicle purchase and still want to guarantee a great price, know that this is possible through a purchase with a CNPJ (Brazilian company tax ID). 

If you have a CNPJ (Brazilian company tax ID), you can buy a brand new car with up to 301% discount, along with a number of other benefits. 

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