Today there are several ways to become the owner of the car. In addition to its acquisition in the salon or from a private owner, the car can be leased and followed by the right to redeem it. But before making such a deal, you need to understand its intricacies. What is renting a car with a ransom? Are there any pitfalls in a car rental? How profitable is this? How does it work? We will try to give detailed answers to all these and other questions.
How does renting a car work with the right to redeem?
Renting in its classical sense is the transfer of a car for use by a rented person. At the same time, he signs an agreement on timely payments for this service. As soon as the lease expires, the car returns to the owner.
But there is also such a concept as "rolling." In this case, the car is not returned to the owner, but remains with the tenant, who is obliged to pay the agreed cost of the car at the end of the lease. Naturally, in this case, the monthly payment for rental of the vehicle will be higher.
Rolling can be beneficial in several cases. Rent is an exit for those who want to buy personal transport, but do not have enough funds for this. Also, a car for ransom will be relevant to people who cannot or do not want to take a loan.
The reason for this may be an existing loan, for example, for an apartment, or too small a salary, when the loan simply will not be given. The most active "users" of rolling are taxi drivers. It is beneficial for them to work under such conditions.
Solly + provides car rental in Kiev and monitors the condition of cars.
Advantages and shortcomings of a car under repayment
You shouldn't use service until you examined it. It is necessary to study all subtleties as it is possible more carefully. Then you minimize risks and precisely receive benefit from any kind of the transaction. For this purpose carefully study the contract, his action, all conditions. Learn that the car under repayment means. If you need the car for several days, advise to use car-rental without driver.
Each company has requirements and terms of transaction. But there are basic conditions which will be present at any contract. For example, to the tenant nineteen years have to be executed, he should have no criminal records, he should confirm the level of income.
For signing of the contract of payment by installments you need to issue an insurance. It can be the comprehensive insurance and the CMTPL. With rare exception - one of them, but the thicket needs both. Until the car carried over to the tenant, the lessor is engaged in insurance. The client pays on the comprehensive insurance sum.
Until all cost of transport isn't paid, it is the property of the company lessor. The client steers the vehicle as the power of attorney. He is obliged to coordinate everything, as for use of transport. For example, he can't independently give a car to other people.
All lease term and uses of transport are described in the document. Territorial borders are registered in him. For them the tenant can't leave without notice the companies. As a rule, for automobile cars they already, for cargo - are slightly wider.
In terms of the contract possibilities of early repayment of the car can be described. But the companies lessors seldom go on such step as for them it is simply unprofitable. And still such practice exists therefore in advance discuss all nuances before the conclusion of the transaction.
The schedule of payment can be a miscellaneous. The most widespread option - monthly contributions. There are transactions with payment every week or quarterly. The size of a contribution depends on the brand, a class and other characteristics. All this has to be stated in the contract.
Risks and reefs of rent with the right of repayment
At first it may seem that there are no risks, from such a transaction you get continuous benefits. You do not have to ask for a loan from the bank, wait for its issuance and pay huge interest on it. Just distribute payments within a year or two. You can even refuse to buy back at the end of the transaction. Of course, if this was prescribed in advance in the contract. However, there are a number of pitfalls. And for the most part, they relate to the monetary side of the contract.
Consider the simplest illustrative example of how profitable a long-term lease with the subsequent purchase of a vehicle will be. We calculate the average customer costs, for which we will take the popular and popular machine in the economy segment.
A good example will be KIA Rio. This car is chosen quite often. Take its average cost, add to them the price of CASCO and OSAGO, as well as the cost of a set of rubber. As a result, an approximate amount of 230 thousand hryvnias is obtained. In fact, this car can be bought cheaper if you use preferential lending conditions or favorable shares from car dealerships.
Buying a car by ransom after rent almost always implies a certain pledge. It is introduced before acquisition, and it is about 5-10 thousand hryvnias. As soon as the lease period comes to an end, the money is returned.
On average, the duration of the contract is two years. The fee for a car is equal to the rent payment in rental companies and amounts to about 18 thousand hryvnias. It is not difficult to calculate that the total amount will be almost twice as much if you compare it with the price of a car from the cabin. At the same time, you already have a used car in your hands, which you operated for two years.
Now let's give you an example of a taxi. In this case, the operation of the transport is more active, and depreciation occurs much faster. Such a vehicle "winds" in two years more than three hundred thousand kilometers, after which not only breakdowns and damage, but also traffic accidents are not excluded.
Tips for renting out cars from Solly +
Based on previous calculations, sometimes the benefit is rather dubious. But consider that they were carried out on average. Therefore, the skew can be both in one direction and in the other. In any case, the client overpays a huge amount for the car.
Therefore, we advise you to find a company that offers better rental conditions for a car with the right to buy back. When consideration of the contract, note some conditions:
- Find a convenient payment schedule and their amount;
- Calculate the total costs;
- always be vigilant;
- Only enter into a lease with proven companies.
You should be satisfied with the payment schedule and their amount. It can be no more than the price of renting a similar car, this option is considered more acceptable. The amount of payments must not be higher than credit payments for the same period of time. The company makes it possible to refuse to buy the car at the end of the contract. Rent amounts are paid regularly, but the client is not obliged to take ownership of the car. This form of lease is called leasing.
Be sure to calculate the total cost. This must be done before signing the contract, otherwise it will be late. Moreover, they can be so high that it will be more profitable to use a loan from the bank. Such a lease with a subsequent redemption will be unprofitable for you.
Be careful, fraud flourishes in the auto business. Some unclean companies may try to terminate the contract at the very end of the lease. To do this, in fact, is not so difficult. You need to damage the car or adjust the situation in which the client allegedly refuses to make mandatory payments. In this case, company representatives can hide, not answer phone calls and letters, and even deliberately adjust the accident.
In order not to fall for the fishing rod of cheaters, conclude a lease agreement with large and proven companies that have been operating on the market for more than a year. They will not engage in such scams, as they value reputation. Try to avoid working with private persons.