To make a car leasing in Hungary, you go through a bank or a local credit institution, such as K&H Leasing or the subsidiary Merkantil Bank of the group OTP Bank.
How does leasing work in Hungary?
Leasing (or leasing) is a contract that allows you to use a car in exchange for monthly payments, without buying it outright. It involves three parties:
- The borrower, who is also the lessee of the vehicle; ;
- the dealer, which provides the car; ;
- the landlord, that is, the bank or lending institution that finances the transaction.
The principle is the same as that of the car leasing in Poland where the Car Leasing in Spain : You can lease a vehicle by making monthly payments. However, there are a few specific Hungarian requirements you should be aware of, particularly regarding taxes and currency.
We need to distinguish between two options. The Lease with Option to Purchase (LOA) provides for the option to buy the vehicle at the end of the contract. The Long-Term Rental (LTR), ...this one simply ends with the return of the car, with no option to purchase.
In Hungary, auto financing is provided by several well-established organizations, notably in Budapest :
- Merkantil Bank, a subsidiary of’OTP Bank, which manages car rentals under a lease agreement under the name Gépjárműlízing ;
- K&H Leasing, for new and used cars and light commercial vehicles; ;
- the CIB Leasing Group, a dedicated subsidiary of CIB Bank ;
- Euroleasing, the group's leasing brand MBH Bank.
Lease agreements generally range from 24 to 60 months, with options ranging up to 84 months for individuals. The defining feature of Hungary remains the VAT at 27 %, the highest in Europe.
For a professional involved in operating leases, a portion is recoverable: either a 50 % package on rent, or the actual pro-rata share of business use if you keep a detailed log of your trips.
What are the benefits of car leasing?
Car leasing is suitable for both individuals and businesses. You use the vehicle without committing to buying it, unlike a traditional auto loan. Here are the main benefits:
- The monthly payments are generally less expensive than an auto loan; ;
- L'initial contribution The amount requested is often reduced, which limits the upfront costs; ;
- You're driving in a new vehicle without having to come up with a large sum all at once; ;
- Many contracts include services such as the’insurance, maintenance, or the’roadside assistance, depending on the terms of the selected offer.
What are the requirements for leasing in Hungary?
In a lease, it is the landlord (a Hungarian bank or credit institution) that retains ownership of the vehicle throughout the term of the contract. It reviews your application on a case-by-case basis and sets its own approval criteria. The terms and price vary from one agency to another: compare several offers before signing a contract.
In practice, you'll usually need to provide the following documents:
- A copy of your identity card or your passport; ;
- Your driver's license valid; ;
- A rent receipt or proof of address; ;
- Proof of revenues or your most recent pay stubs; ;
- A tax assessment notice recent.
The landlord looks first and foremost at your debt level. If you have too many outstanding loans, your application may be denied.
Car leasing in Hungary is primarily intended for residents, individuals or businesses based in the country. If you don't have an address in the country, agencies are often reluctant to work with you. In that case, contact them directly at Budapest or in your city to see what's available.
Also, be sure to plan ahead for the incidental expenses such as insurance before signing. These are costs that are in addition to the monthly payments and can put a strain on the contract’s overall budget.
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