Leasing

Leasing is a good choice if you wish to buy durable goods, e.g. a new car. Unlike a car purchased from consumer credit, a leased car remains in the ownership of the leasing company. If you enter into a leasing agreement, you will pay monthly instalments in accordance with the schedule agreed therein. If you pay the price of the car in full, it will become your property as a rule.

The ABC of leasing:

  • a leasing deal can be arranged with a leasing company;
  • leasing is a form of medium-term borrowing, suitable for the purchase of a car for example;
  • leasing normally involves a fee for loan processing;
  • car leasing requires comprehensive motor vehicle (CASCO) insurance.

Important decisions to be made when entering into a lease agreement - see Six steps to consider when choosing a loan.