Are you in Croatia? Are you looking for a new car? Automobile leasing is for you. This rental system allows you to have a vehicle at your disposal with or without an initial contribution. In this text, we will tell you how to lease a car in Croatia?
Which to choose between the LOA and the LLD?
The traditional system for buying a vehicle has lost its popularity with individuals and professionals at the moment. Consumers are finding more and more drawbacks to traditional systems. Most motorists opt for Long-Term Rental or LLD as well as Rental with Option to Purchase. Moreover, after a few years, this type of rental has taken its mark and won over most users, to the detriment of conventional credit.
According to studies conducted by financial companies, 85% of new vehicles are financed by the LOA. In just one year, the rent-to-own system has seen a considerable increase of 5.6%. These rentals concern all brands of cars, moreover, the lessors offer the possibility of home delivery of the property. This feature makes the system a bit more interesting.
On the business side, Long Term Rental is the most popular. Moreover, today, 85% of company vehicles are financed by Long-Term Rental. Nevertheless, it is not possible to buy the cars at the end of the contract. Vehicles are leased for a fixed term, generally between 12 to 72 months.
How does leasing work in Croatia?
Leasing is a contract that allows the lessee to use a car by paying fixed and predefined monthly installments upon signing the contract. The car will be leased for a fixed period between 24 to 60 months depending on the terms of the contract. The customer then has 2 choices at the end of the contract, either he returns the car or he buys it. He can also extend the rental by choosing a new vehicle. It's possible !
The price of the monthly payments is based on several criteria, mainly:
- The model of the car;
- The initial price, because it is indeed a new car;
- The mileage;
- The duration of the contract ;
- The tenant's contribution if any;
- As well as the residual value tariff.
At the same time, the tenant benefits from other LOA services, in particular: maintenance services, insurance, etc. The extent of additional services depends on the terms of a contract.
