This article is Holiday car “car finance topics,” the third in content, designed to answer questions about consumer finance lease terms.
in the “What plans do not buy a car loan worthwhile? To get to know the three kinds of loans, “and” nearly 20 stores site visits, the full amount, who car loans more cost-effective? 4S shop ferret routine “in these two articles, I explain to you the current mainstream consumer car loans as well as loans, purchase the full amount of the difference, 4S shop common” routine. ”
For this concept of “finance lease”, many consumers will feel strange, but others said they had heard, it was therefore even tasted the sweetness or misfortune.
In fact, this non-bank financial lease financing in the form of European countries has been relatively mature, it is also been used in domestic automobile consumer industries. Today I’m bringing you in-depth look at the new car leasing business.
01
car finance leases What is?
First car finance lease is a finance lease is only a very small segment of the plate, large machinery, means of production and so can be leveraged lease. The definition of a finance lease, are explained on a comparison of academic degree Wikipedia, little wisdom according to their own understanding as we give a simple example.
A need later to such a Mercedes-Benz S class C, but not enough money. Then B and A that I have money, I’ll help you buy to C, the monthly rent when you give me, I’ll give you a car. In the course of the lease, all property of the vehicle owned by B.
we set up a lease, such as one year, after the end of the lease to pay the balance due if A, then to transfer ownership of the vehicle from B to A; if A does not want to, then we two clear.
For A, he just takes a little rent, will be able to open millions of dollars on the Mercedes-Benz S-class; for B, as long as he is good control “rent + residual value of the vehicle> a total cost of a new car payment,” it can achieve profitability; for C, he as a car dealer / manufacturer can sell a car, naturally vested interests.
Therefore, the “car finance leases”Just from the literal meaning is well understood: to raise funds by way car rental, enabling excessive consumption.
consumers, financial leasing companies, auto dealers / manufacturers can get what they want by way of finance leases, it can be said to win three.
Also the minimum down payment conventional car loan is 30 percentage mostly, but also count purchase tax, insurance and other expenses. However, finance lease, the lease just because the relationship between consumers and financial leasing companies, consumers only need to pay monthly rent, down payment, purchase tax, insurance and other financial leasing company by the bear, effectively reducing consumers’ initial investment costs. Therefore, “0 down payment” or “low down payment” is a lot of car leasing business the slogan.
02
can finance leases reasonable tax avoidance?
For enterprises, start a company of my friends, tax evasion is absolutely untouchable red line, but it is a reasonable tax avoidance learning. Before talking about car finance leases how reasonable tax avoidance, let’s clear a few concepts. For ease of understanding, of course, we have some financial concepts to simplify, if put imperfections, but also look Tell me what you bear with me.
The first is how to calculate the enterprise value-added tax? In theory, VAT = output tax – input tax. The general taxpayer VAT rate is 13 percentage of the file, if the company bought a cargo of open fare 1130 yuan, 1000 yuan of which it is the price excluding VAT, the VAT tax is 130 yuan, the company at this time the input tax of 130 yuan. The company will then open to the goods sold 2260 yuan fare, including VAT tax is 260 yuan, the company at this time the output tax of 260 yuan.
So the deal, the company should pay the VAT tax theoretically 260 yuan output tax – input tax 130 yuan = 130 yuan. As for income tax for profits generated by the company, will not be discussed here temporarily.
We in the car, the dealer usually give us issues “Special VAT invoices”, which contains the VAT tax. To open a fare of 10 million new cars, for example, the VAT rate 13 percentage VAT tax 11,504.42 yuan.
Such a VAT invoice does not make sense for us personally, but if this invoice was made out to a company, which is the company bought the car, will undoubtedly increase the company’s input tax tax, thereby reducing the company should pay the VAT tax.
This is why many companies in the name of the owner of the car company is a major reason. In addition, the annual vehicle depreciation, maintenance, fuel and other expenses will be counted in the company’s daily expenses, thereby reducing the company’s profits, pay less corporate income tax purposes, this article will not discuss.
Of course, in the name of the company car is not all advantages in the used car business, the company under the name of the car is usually not enough people feel that care, poor condition, it is easy to keep the prices down.
before the transfer if selling cars from the company to the individual, will increase the transfer record, thus affecting the residual value of used cars. If the company is not your own, just borrow a friend’s company to purchase vehicles to avoid tax, vehicle ownership friends of the company. Assume that poor management company, the vehicle is likely to be used to force the debt, which also have to consider the risks.
that you might say: I do not own another company, the company could not find a friend to help tax credit, then “value-added tax invoices” when my car it would not be “a waste”? Do not worry, “where there was rivers and lakes, making money where there will be business”, professional car finance leasing company can help you solve this problem. As mentioned earlier, the company by way of finance lease car, in theory, can save 13 percent VAT. So if the car finance leasing companies and individual buyers reach some sort of agreement to divide this saved taxes is not impossible.
03
4S shop how to finance lease?
At present, many 4S shops will offer financing and leasing business, but most of them are relatively high amount of cycling luxury brand, common brand of 4S stores still dominated by conventional loans. Visited by a number of 4S shop, Ash found some “doorway” finance lease 4S shop mode.
While the foregoing it comes to “0 down” or”Low down payment” is a lot of car leasing business the slogan, but consumers want to shop in the 4S simply pay a monthly rent to drive away a new car is not realistic.
If you take a finance lease, the rent before the monthly payment, 4S stores will first require you to pay a “deposit”, similar to the previous rental usually pay a deposit.
BMW 4S shop to Ash Advisory for example, the amount of the security deposit as a percentage of the purchase price of 20, after the lease expires if not this car, the deposit can be refunded; if pay the balance due to get this car ownership, then deposit it directly into the calculation of the balance due.
So if you want the 4S shop by way of finance leases “low down payment” to drive away a new car, the basic unlikely. Down just become a “margin”, for a way of saying it. It then you might want to ask, there is no advantage “low down payment” of, 4S shop of finance lease what is the point?
While walking in finance lease 4S stores have to pay the loan down payment and about the same “margin”, but “low monthly payments” for consumers still have no small appeal.
such as Cadillac’s “3X3 plan” provides a “down payment percentage of 30, 3-year low for the month, 3 years for a new car,” the financial plan, compared to conventional loans in the “low monthly payments” are more advantages .
to guide price of 259,700 yuan XT4 28T technology type, for example, the “3X3 plan” in a month for as low as 2875 yuan, the equivalent of a day’s rent as low as 95.8 yuan. And this level of rent on rental car websites may need 300 yuan / day, compared with Cadillac “3X3 plan” will lower the rent a lot.
According to the customer service introduction, after three years if you do not want this XT4, and 3 percent down payment when the car can be returned in full, this is equivalent to a lower rent you rent a car for 3 years , but also a new car. This concept of consumption are more advanced young people, it has a certain allure.
If it is normal loans to buy Cadillac XT4 28T technology type, according to “down 30 percentage installments for three years,” the conventional loan program for the month may be as high as 6,7 thousand dollars.
For no shortage of down payment, monthly payments do not lack the individual consumer, simply walk through finance leases to “save money” is also possible. Specific process is: 4S shop serving individual consumers docking financial leasing company – signed a tripartite agreement – the first payment of individual consumers will call financial leasing companies – financial leasing companies to come forward car – the first financial leasing company’s license, car All property owned financial leasing company – within one month of vehicle ownership by the finance leasing companies and individual consumers – consumers pay a monthly “rent” that is, monthly supply financial leasing companies, financial leasing companies each month to the receipt to the individual consumer.
by this set of processes, auto finance leasing companies can get a new car invoice of input tax deduction for 13 percent VAT. Removal of foreign auto finance leasing company’s capital, operating and other costs, this part of the “benefit” obtained can be divided with consumers, 4S shop. So when the 4S shop recommended car program and consumer finance lease, often at better prices as a selling point.
Of course, many consumers do not easily accept this way of car, new car ownership since the beginning of party financing leasing companies. Although you can transfer within a month, but inevitably there will be some risk, then you need to make a 4S shop or dealer group trust endorse finance leasing companies. And this way will make the new car leaving the car transfer record for second-hand cars after the hedge rate will be affected. After coupled with financial leasing company, 4S store profit divided up, leaving the interests of consumers are often less, if the prices of itself is not high, “money” way this car is of little significance.
In addition to the “low monthly payments” and “save money”, there is a class consumers will choose to purchase a car in the way of finance lease 4S shop. Such consumers do not have the full amount of funds, but also tainted credit, for them, the normal loan has closed the door to them, financial leasing may be the only way out.
However, for this type of customer, financial leasing companies and 4S stores do not allow them to account for what is cheap on car expenses. Chances are considering their credit problems, but also increase the cost of their car, to cover the higher risk factors. It may be seen in this part of the crowd “funds, credit” aspects of the short boardFor car demand in recent years “0 down payment”, “as a down payment” and “low down payment” financing lease car platform is on the rise.
04
“0 down” car platform fly it?
In recent years, we can see that “0 down payment”, “as a down payment” and “low down payment” car platform through various channels, in fact, they are essentially finance lease car mode. The face of ultra-low down payment and low qualification requirements, many consumers are eager. At the same time, some people may ask: such “low down payment” car platform in the end fly it?
little wisdom here to tell you the answer first: fly is tricky, but it is a little expensive!
by querying a popular “low down payment” car platform, Ash saw being done due to the current events, the original 5900 yuan down payment required in order to drive away the 2019 Corolla 1.2 T S-CVT GL pioneer Edition (country ⅵ), now down 0 yuan will be able to win.
the first year of monthly rent 3908 yuan, after one year you can select “one-off payment of the balance due” or “balance due will be phased.” And above prices it is already included purchase tax, the first year of insurance, on the card, transfer and maintenance and other expenses for the first time, consumers only need to pay another 3,000 yuan service fee can be.
could not get a new car for the first payment, or poor credit consumers, the monthly rent of 3,908 yuan in the first year will be able to open the car, still it sounds very attractive. But the following little wisdom to help you simply Counting, you can find a huge price difference which exists.
First we calculated according to the introduction of the “low down payment” car platform, a one-time payment of the balance due after one year if we choose the way, this 2019 Corolla 1.2T S-CVT GL Pioneer version (country ⅵ) and total actual expenditures for the purchase 3908times; 12 + 111600 + 3000 = 161496 yuan; if we choose the 1 minute 36 years later the way, the actual total expenditure for the purchase 3908times; 12 + 3908times; 36 + 3000 = 190,584 yuan.
If we purchase through the normal way, the current 2019 Corolla 1.2T S-CVT GL Pioneer Edition (country Ⅵ) in the terminal there are about five thousand dollars in cash benefits, after the prices of concessions for 114,800 yuan, purchase tax is estimated to be 10,000 yuan, the first year of insurance is estimated to be 6,000 yuan, the licensing fee is estimated to be 1,000 yuan. The total expenditure of the full amount of the final purchase of about 131,800 yuan.
If car loans, FAW Toyota provides a “down payment percentage of 50, 3-year interest-free” financial plan for the Corolla. Loan fees 3,000 yuan 4S shop will charge even if the final total expenditure, but also 134,800 yuan.
we can find by calculation, if you select the “low down payment” to buy this car the Corolla platform, the use of one-time payment of the balance due after one year, compared than the normal purchase extra expenditure of nearly 3 million. If after 1 minute and 36-year repayment period, compared to a normal car extra expenditure of over 50,000 yuan. These cost differences with respect to the prices of Corolla is definitely not a small sum, consumers can get only “0 down payment” and “low credit requirements”, think about it a bit really does not pay.
In addition to the high aggregate expenditure actually go out, these “low down payment” car platform compared to a normal car the way there are many disadvantages. For example, consumers in the first year is way rental car, so the first year of ownership of a vehicle owned by the car platform for all new cars in the first year only on the license of the car platform name. Second years to transfer to the consumer’s name, one more transfer will naturally have an effect on the hedge ratio.
friends living in the city’s licensing restrictions may think, I just did not license limit, incidentally, in this way, “rent” a license is not bad. Ash can only say that you want more, according to a small intellectual understanding, a popular “low down payment” car platform, the first year for the city to provide users limited license is a license surrounding cities, such as Beijing corresponds to the license Langfang, Shanghai Huzhou corresponding license and so on.
The second of these “low down payment” car platform for the first year of the mileage is also limited, usually 2 or 30,000 kilometers, wanted to “rent” a car to run net friend about cars as early as possible to dispel the idea.
part of the “low down payment” car platform will retreat into the car and not the car the car back.
is refundable if the car, the first year after the lease expires, the consumer can choose not to pay the balance due no installment purchase, the consumer and the platform on two clear, and this is the most conventional finance lease car mode.
If the vehicle is non-refundable, consumers in the first year after the lease expires, the balance due can only choose a lump sum or in installments car.
If you think that the retreat vehicle selection, the first year after the end of the lease you will be able to “get out” yet? Driving people know that the road will inevitably be grazing, even if you promise not to hit others, we can not guarantee that someone will not hit you.
by a customer service consulting “low down payment” car platform, a little wisdom to know if you are more serious accident occurred in the first year of the lease term, even if the whole of insurance paid out a year back car when breakage costs will be asked to pay a certain vehicle. As for specifically how much this costs, impairment of the vehicle will have to see to be, that is to say the car platform final say, quite a kind of “human Daozu, I fish” feeling.
It is because of the presence of the drawbacks of these “low down payment” car platform, “low down payment” had been attracted by the car after car consumers tend to feel worth. Plus a lot of this part of the car buyers are lacking in credit record, repayment capability, so the case of late payments are not uncommon. So there will be some “low down payment” car collection vehicle platform violence exposure on the news, “secretly” negative news drove the vehicle. As in the end is the consumer’s fault or wrong car platform, really hard to say.
presumably after reading this article, you lease financing for this car have a deeper understanding of the way. Essentially, we provide financial leasing a car rather special financial program, but also for different groups of people, the significance of financial leasing is not the same. Some people will come to enjoy the new car life “low monthly payments”, “new car normally open normally” through financial leasing; someone will come to achieve a reasonable tax avoidance through financial leasing, improve the quality and grade of the car; it was because of the money, credit terms are lacking, a last resort before choosing a finance lease; others were being “low down payment” attracted into theHang some finance lease car platform.
Ash believes, for ordinary consumers, if the down payment funds, credit no problem, the value of the vehicle purchase is not too high, absolutely no need to go this route finance leases. After all, compared to the normal procedures of lease financing to buy a car will be more complex, consumers have to take some risks, a multi-car records of transfer will affect the future of hedge rates. If a hot head, chose to “low down payment” for the stunt car platform, after careful calculation you might find that the original decision is how much more harm than good.