Are you in Hungary? Do you want to have a new car? Credit seems a bit expensive, especially if you can't afford it. The most suitable contract is leasing. This consists of having a vehicle at his disposal by paying monthly installments according to the conditions of the contract. In this text, find out how to lease a car in Hungary?
How does a leasing work in Hungary?
Leasing is a contract between 3 entities, in particular:
- Borrow it who is also the lessee of the vehicle;
- The dealer ;
- As well as the bank, the credit organization or commercial brand, also called the lessor.
The tenant will have a vehicle at his disposal in accordance with the stipulations of the contract. However, rental with purchase option should not be confused with long-term rental. These two contracts allow the rental of a car by paying monthly installments. However, the LOA provides for a purchase option at the end of the contract, and the LLD does not.
What are the benefits of car leasing?
Leasing is a practical contract for a lessee who wants to rent a car for a fixed period, that is to say, quite limited. The duration of the contract is generally between 24 and 72 months. The lessee will be able to use the car without committing to the purchase of the vehicle, contrary to the purchase on credit. This type of contract is advantageous for both individuals and professionals, in particular:
- The monthly payments paid by the tenant are cheaper than car loans. However, the car does not belong to the lessee. Unless the latter decides to buy it at the end of the contract;
- In leasing, the prior contributions are not important;
- The lessee may have a new vehicle at his disposal without committing to a purchase;
- The contracts provide many benefits, including: insurance, maintenance, assistance, etc. This functionality depends on the terms of the contract.
What are the conditions for leasing in Hungary?
In leasing, it is the lessors, namely the bank or the credit organizations who are the owners of the vehicle and not the dealer. They are therefore free to impose their own rules. The lessors will examine the conditions according to the possibilities of the tenant. In general, the conditions for leasing are almost the same in all European countries. If you are in Luxembourg, discover our article on how to do leasing in Luxembourg? For Hungary, here are the leasing conditions:
- Provide a copy of identity document to the lessor;
- As well as a rent receipt;
- Then proof of income or payslips;
- Finally, a tax notice.
The tenant must not have too much debt for his file to be validated. It should be noted that the lessors carry out meticulous studies before granting the contract.
