The term financial leasing sounds difficult to understand. If you replace it with words such as "renting instead of purchasing", "playing a car" and "0 down payment", I believe everyone is familiar with it. In vernacular terms, the car buyer pays a very low down payment or zero down payment, and pays the rent every month. After reaching the agreed time limit, the vehicle account will be transferred from the company to the lessee.
Financial leasing is divided into two types according to business models: direct leasing and sale and leaseback.
1+N mode (rental): pay a very low down payment, pay monthly rent, and choose to renew the lease after 1 year, return the car and pay the final payment (more abroad, less at home).
N+0 mode (loan): pay a very low down payment, pay monthly, until the repayment is completed, the vehicle is transferred to the user.
Sale and leaseback (loan): The car is country email list generally owned by the owner when the actual business is carried out, but it is similar to "mortgage" to a financial leasing company, which is similar to a "mortgage loan".
What is the difference between financial leasing and car instalment?
2. Market size
In many mature auto markets, financial leasing is one of the mainstream ways consumers buy vehicles, accounting for about 15% to 30% of new car retail sales. In China, the current penetration rate is still expected to be 2.5%, and the market space is huge.
But judging from the current development of financing business in my country, the fundamental purpose of financial leasing is to let consumers buy a car with a low down payment, not to rent a new car for a few years. Therefore, 95% of the financial leasing contracts are the above-mentioned quasi-loan contracts. Rent is not a result, but a transition. The chart below shows how the new car market is purchased.
Since they are all financing and borrowing, why not go to the bank to borrow? In fact, this involves the user group of financial leasing.