What is the model of auto financing lease?

Buying a car through the auto financing lease mode requires only "10% down payment"? This low down-payment mode of purchasing a car is not a set up or not? The first thing you need to do is to get your hands on a new car, and you'll be able to do it with the help of your own personal computer.

Schematic diagram of the auto financing lease model

Question 1: Is auto financing lease a car purchase or a car rental?

This is one of the issues at the center of the debate. Some people buy a car through auto financing leasing, and after a few months suddenly have a feeling of "sudden realization": No, I pay so much rent every month, and the car is not under my name is not a big loss? These people basically did not look at the contract, and there is no in-depth understanding of the car financing lease this emerging mode of car purchase.

Through this relationship diagram, you can see that auto financing leasing is mainly composed of three parties, the lessee (consumer), the financial leasing company, the supplier. The consumer, as the lessee of the vehicle, signs a contract with the financial leasing company; the financial leasing company signs a contract of purchase and sale of the leased goods with the supplier and pays for the purchase of the leased goods; the consumer obtains the right to use the vehicle from the financial leasing company and pays the leasing fee every month; the consumer obtains the after-sale service of the vehicle from the supplier.

The ownership of the vehicle is finally transferred to the user, and the rental company will not give the ownership to the user, so automobile financial leasing boils down to buying a car rather than renting one. Consumers are also reminded to spend rationally and properly assess their actual situation before choosing whether to purchase a car using this model.

Secondly, the biggest difference between auto financing and leasing for consumers is that going to a car rental platform to rent a car is to solve the momentary need for a car, the car is a short-term mobility tool; buy financing and leasing products, the consumer aims to have a car in the future or because of the lack of funds in the hands of the present or the need to do other uses. Automobile financial leasing products can be a good solution to the consumer's demand for funds, the logic behind it is a financial aspect of the financial factors in it.

The last point is more obvious is that the car rental fee is calculated by time, for example, 70 yuan per day, is calculated according to the use of time rent is always the time dimension. Auto finance leasing model is to consumers to occupy the time of capital costs to calculate so there is interest costs in it. Simply put, the financial leasing platform from the capital market to get money, the money into the car, and then to the consumer, and still low down payment. The money from the capital market and low down payment of the risk and cost of capital accounting out of the cost (may also be complex), these costs are all borne by the financial leasing company, so its pricing mechanism is far more complex than a simple rental car pricing by the time to be much more complex, so the overall cost is higher than the consumer's initial full purchase of the car.

And for consumers who choose auto financing lease, originally because of insufficient credit qualification, insufficient funds, or do not want to buy a car in the hands of all the funds occupied, through the financial leasing model can be several years in advance to drive the car, or will be in the hands of the spare funds to do financial management can also produce a considerable return. In addition, rental car rental are old cars, while financial leasing to buy a brand new car.

Question 2: Who is more suitable for financial leasing?

What kind of people are more suitable for such products? First, a short period of time funds are tight, but in the long run has the ability to repay the small and medium-sized enterprise owners; second is rich, but this money spent elsewhere to earn more; third is in the banking system is more difficult to credit, and do not want to take up the bank credit line of people. This kind of people three or four cities will be a little more, there is no collateral assets, and relatively low wage income, the bank is not willing to handle the amount of slightly larger loans, etc..

There are still many car buyers with the above situation. From the actual occurrence of auto financing cases can be analyzed to see, three or four tier cities "sinking market" small town youth prefer auto financing and leasing. Small town youth like to contact new things, through the purchase of a car to improve the quality of life of the family's willingness to strong, their income is not too high, but also have a certain amount of savings, because there is no record of loans, and can be collateralized by a small number of assets, it is difficult to buy a car from the bank loan under normal circumstances, so they buy a car through auto financing leasing "1 into the down payment". Moreover, at present, the first and second tier cities of the automobile consumer market is basically saturated, three or four tier cities do not have the worry of traffic congestion, the number of potential consumer groups is huge, and these past neglected consumer groups have become the major car sales channel efforts to tap the object.