You are in France ? Do you want to have a new car? Leasing is a beneficial contract for you. This type of contract provides for the rental of a car by paying reduced monthly installments according to the clauses of the contract. In this text, we will inform you a little more about how to lease a car in France?
How does car leasing work in France?
In France, here is how car leasing works in France:
- The borrower will be renting a new vehicle;
- He will borrow the car from a bank or a credit institution. The latter will be the donors;
- The rental will be governed by a contract; the conditions are already there.
In addition, rental with purchase option should not be confused with long-term rental. Indeed, with Long Term Rental, the lessee cannot buy the car at the end of the contract. While with the LOA, it is quite possible, always according to the provisions of a contract.
What are the mandatory points of leasing in France?
The leasing contract must include the following elements, if you live in France:
- First, the description of the vehicle to be rented;
- Payments;
- security deposits;
- The duration of the contract which specifies: the price of the monthly payments as well as the interest;
- The duration of the monthly payments, its price, as well as the interest;
- The lifting conditions;
- Penalties in the event of payment default;
- As well as the conditions for terminating the contract;
- The hidden conditions, that is to say the clauses that will protect both sides in the event of a dispute.
What are the leasing conditions in France?
Leasing is a rental contract, so the lessors have the right to impose their conditions before granting the contract. In addition, the lessors will first examine the profile of the tenant and decide whether to grant the loan or not. For this, the tenant will provide files that contain:
- An ID ;
- A copy of the rent receipt of less than 3 months;
- payslips;
- Proof of address ;
- Tax notices.
Note that lessors can grant leasing to self-employed workers or people who do not have proof of income. However, this offer is still subject to conditions. In addition, if you are in Spain, discover our advice on how to lease a car in Spain?
