Are you in Belgium? Are you looking for a new car when you don't have enough money to buy on credit? car leasing is the deal for you. Indeed, it is a contract which consists in renting a car with an option to buy at the end of the contract. In this text we will tell you a little more.
What are the different types of leasing in Belgium?
Car leasing is also called Rent with Option to Buy. It is a new method of payment for acquiring a new car. In leasing, payment is made through monthly installments fixed according to the clauses of a contract. At the end of the contract, the lessee can decide to buy the car or return it. There are two types of leasing in Belgium:
financial leasing
This formula applies at the end of the contract. This consists in letting the lessee acquire the car definitively. This, by paying a balance defined in the contract. The renter can also make the decision to return the car.
Operational leasing
The latter is intended for lessees who do not want to buy the vehicle at the end of the contract. In this case, he can opt for the long-term contract without buying the car.
What are the benefits of car leasing?
Leasing is a contract that offers many advantages. First, because it is a profitable investment, essentially for a company.
A complete offer
One of the advantages of car leasing is also its all-inclusive rental formula. Indeed, the monthly payments to be paid already include all the additional costs, in particular: taxes, repairs, maintenance, etc. The offer is more complete, depending on the services selected. At the same time, insurance and minor repairs are included in the monthly payment package.
To save money
For a young driver, private leasing allows him to save money. Thanks to this formula, the car insurance premium dedicated to young drivers is reduced. However, this offer is not available to young drivers under 23 years old.
What are the conditions of a contract to which one must remain vigilant in Belgium?
Although leasing with option to buy has many advantages, you still have to remain vigilant on certain points, mainly:
On the possibility of purchase
There are some leasing companies that offer the possibility of buying the vehicle well before the end of the contract. Make sure that the conditions match those listed on the lease and purchase agreement.
On warranty checks
Normally, a security deposit is requested from the tenant at the time of subscription. If the renter does not buy the car, this security deposit will be returned entirely, according to its initial form.
On financial obligations
In general, a leasing contract is subject to a payment obligation, depending on the duration of the contract. In the event of termination of the contract, the tenant has the right:
- To demand the total return of the car;
- To demand unsettled payments;
- To demand compensation.
The most important thing is to check that the conditions on the ground agree with the lease contracts.
