Car loan butler: how to understand the auto finance lease direct lease and leaseback of the

Automobile financial leasing is a model of the auto finance industry, but with a lower down payment and more flexible business, it is an important direction to promote auto consumption in the future. After a period of preparation, many auto finance leasing companies began to carry out business in 2015, Pioneer Taimeng received a $100 million investment from PAG, ECL received a RMB 2.5 billion investment from Tencent, Jingdong, and YiChe, and JianYuan Capital received an investment of RMB 600 million from a number of distributor groups*** For a period of time, the finance leasing circle was bustling with activity. There have been more and more auto finance companies jumping on this piece of cake, and I believe it will develop even more rapidly in the next. Financial leasing in itself is a booming auto finance model, but also a reflection of the automotive market towards maturity, for China's financial penetration are to promote the significance of the increase.

To understand the automobile financial leasing business, let's start with the concept of financial leasing. Financial leasing is actually an alternative installment payment method of car purchase, which generates revenue by leasing the car instead of buying it. The ownership of the asset may or may not be ultimately transferred. The lessor according to the lessee's specific requirements of the vehicle, the capital to the supplier to buy the vehicle, and leased to the lessee to use, the lessee pays the rent to the lessor in installments, the ownership of the vehicle belongs to the lessor during the lease period, the lessee has the right to use the leased object. At the end of the lease term, the rent is paid and the lessee performs all the obligations according to the provisions of the financial lease contract, the ownership of the vehicle is transferred to the lessee.

At present, automobile financial leasing has become an effective supplement to the traditional automobile installment loan business, and at the same time has the advantages that the installment business does not have. Automobile financial leasing, mainly divided into automobile financial leasing in the direct lease and leaseback mode. Direct leasing can also be called positive leasing, and leaseback can also be called anti-leasing.

Direct leasing, is direct leasing. It is a business in which a financial leasing manufacturer purchases a vehicle from an automobile intermediary designated by the user in accordance with the specific requirements confirmed by the user's enterprise under the condition of charging rent and leases it to the user or enterprise for use. To put it bluntly, it is the financial leasing manufacturer, in accordance with the customer's needs to reach an agreement, the direct purchase of vehicles, vehicles registered in the name of the leasing manufacturer, and then leased to consumers.

Take a simple example: Mr. Chen in due to the long distance to work, decided to purchase a car as a daily tool, he looked at a value of about 200,000 models. But considering the cost of capital, Mr. Chen can choose to pay 30% of the down payment of the automobile consumer finance or lower down payment of the automobile financing lease model. After weighing the two, Mr. Chen chose to buy a car through financial leasing, easing the conflict between his desire to buy a car and his limited capital.

Because the ownership of the vehicle is owned by the financial leasing company, the scope of financing provided includes the bare car price, purchase tax, license fee, insurance, GPS fees, etc. According to the contract signed with the financial leasing company, he paid 50,000 yuan as a down payment, and paid the corresponding rent every month according to the contract to obtain the right to use the vehicle,and when the lease period is over, he will be able to get the right to use the vehicle. Wait until the end of the lease period, according to the contract agreement will be the ownership of the vehicle from the financial leasing company to transfer to Mr. Chen. In this way, the repayment pressure of Mr. Chen has been reduced, making it easy for him to become a car owner.

From the example, we can briefly summarize that direct leasing is "buy-to-let".

Sale and leaseback is a financial lease where the seller and lessee are the same person. In a leaseback, the financial leasing company purchases a vehicle from an individual with a financial need, transfers ownership of the vehicle to the financial leasing company, and receives the funds. At the same time the financial leasing company then leases the vehicle to the customer for a rental fee, and the lessee continues to retain the right to use the vehicle.

The benefit of a sale and leaseback is that it allows the equipment manufacturer or asset owner (lessee) to obtain the funds it needs while retaining the right to use the asset, while at the same time providing the lessor with a profitable investment opportunity.

1. During a sale-leaseback transaction, the lessee has uninterrupted use of the asset;

2. The selling price of the asset and the rent are interrelated, and the gain or loss on the sale of the asset is usually not allowed to be recognized in the current period's profit and loss;

3. The lessee will bear all of the costs of executing the deed (such as repair costs, insurance premiums, and taxes, etc.);

4. The lessee can receive a taxable financial benefit from the sale-leaseback transaction.

Take a simple example: Mr. Zhang started his own business last year to do some small business, after a year of operation after the company's operation is not bad, but recently signed a large order, the need to purchase a large number of goods, and the amount of bank loans for the cost of not enough to use the amount of money is now in urgent need of flow of funds. So Mr. Zhang intends to sell the 2014 of their own wholly-owned purchase of 1 Audi A8, but taking into account the daily travel and visit customers, and put him in a dilemma.

So, after he understood the difference between the vehicle mortgage and financial leasing models, he decided decisively to sign a sale-and-leaseback contract with a financial leasing company to sell the vehicle to the financial leasing company. After deducting the vehicle deposit, Mr. Zhang obtained all the remaining car payment, and then according to the contract every month to pay the corresponding rent to the financial leasing company, you can continue to get the right to use the vehicle, the lease period expires according to the contract and then transfer the ownership of the car to Mr. Zhang.

From the example, we can briefly summarize that direct leasing is "sale and lease-in".

With the continuous integration of the Internet and automobile finance, as well as the continuous improvement of China's credit system, the Internet automobile finance ecosystem will be increasingly rich, and the competition will be more intense. Internet auto finance will become a new profit growth point for the auto industry in the future. As a new financial service for automobiles, "financial leasing" has a broad development prospect.

Answer by: car loan butler, reproduced please specify the source.