A little about leasing

After electric cars under 500.000 were exempted from VAT, leasing has become more attractive to private individuals. Although the costs are the same whether you lease or finance with a loan, many people are dissatisfied after trying leasing. Here are some tips along the way.

 

Leasing vs. loan financing

When you lease a car, the leasing company is the owner. The lessee therefore does not have unlimited control over the car. For example, you cannot freely use it abroad.
 
The monthly rent is determined in the same way as the installment amounts in a bank loan. With leasing, you only pay down a restgreen, while bank loans are paid down to zero. When the bank loan is paid off, you can use the car as equity when buying a new car. You can't do that with leasing. But then the total amount with leasing is also lower than with loan financing.
 
Many car dealerships display the monthly payment in large print and hide information about any initial rent, fees and other caveats on underlying pages – often written in small print. Be especially aware of the following:
 
Promotional rate?
During sales campaigns, low interest rates are often offered, which provide very favorable monthly payments. Promotional interest rates throughout the entire leasing period are excellent, but if the promotional interest rate is time-limited, the nominal interest rate may end up at the market rate, which is between 8 and 9% pa for car loans without equity.
 
Fixed or floating interest rate?
Fixed interest rates provide predictable monthly rent. With variable interest rates, the monthly rent can be adjusted when interest rates change. In the case of a variable interest rate lease, you should make sure that the monthly rent is calculated at an interest rate that matches the market interest rate for car loans – that is, that the stated monthly rent is not a hidden lure.
 
Additional equipment?
Specific leasing offers from dealers should apply to a ready-to-drive car. However, it is not certain that winter wheels, charging cable and paint surcharges are included. Most dealers can also offer a service agreement and insurance as part of the lease.
 

Starting rent – ​​or not?

Some call it security deposit or innskudd. In reality, it is about the initial rent – ​​a lump sum. Leases with an initial rent give the leasing company greater security, which can result in lower interest rates – in the same way that banks are willing to lower the loan interest rate when you provide equity. But be aware that the initial rent is unsecured if the leasing company goes bankrupt. The amount will also be lost if the leasing agreement is cancelled.

What is more important: mobility or a car?

Leasing is well suited to meet a need for mobility for example, related to changes in job, place of residence and family situation. However, if you are planning to acquire a dream car, you should not choose leasing. Expensive and special cars are less suitable for leasing because there may be uncertainty related to the residual value. In addition, it can be painful to have to return – or renegotiate the purchase or re-lease of such a car when the leasing period is over. One of the advantages of leasing is that you can acquire a car without tying up capital that you would rather use for other purposes, such as purchasing a home. In that case, it may be worthwhile to lease a simple and affordable car.

Low-cost leasing

Let's follow the idea of ​​prioritizing mobility at the lowest possible cost. A car for under 3000 kroner per month without an initial lease is a low-threshold offer for anyone who suddenly needs a car. It's not much more than what a monthly pass between Drammen and Oslo would cost. You can then either choose a new car in the lowest price range, or re-lease a slightly larger car. Alternatively, you can take over an existing leasing contract.

Leasing of ny car.

It is possible to lease a new car for less than 3000 kroner a month without an initial lease, although the selection is quite small. These may be stocked, discontinued models that the car dealer wants to get rid of – but that is of course perfectly OK.
 
The advantages of leasing new cars are the following:

• Low service costs (renter is obliged to follow the car's service schedule).
• The car is covered by a new car warranty.
• Clear car maintenance with monthly rent, insurance and service.
• You get a car with the latest gadgets and technology.

 

JAC E30X Nordic Edition, 374 km range

Monthly amount: 2990
Starting rent: 0
Source: rsabil.no

 

Dongfeng Nammi Box, 310 km range.

 
Monthly amount: 2995
Starting rent: 0
Source: Motor Forum's website and advertisement on Finn.no.

 

Re-leasing of used bil

Some leasing companies offer re-leasing of used cars that have been returned after a three-year lease. They appear as new with relatively low mileage. If you assume a new 3-year lease, you can expect the following:

• Service costs may require replacement of wear parts and new tires.
• The leasing period may extend beyond the car's new car warranty. Additional insurance should be considered.

Re-leasing 3-year-old leased cars is unlikely to bring any surprises, but leasing older cars with high mileage without a warranty is risky business. Unfortunately, several popular electric car models are plagued with known faults that can lead to long-term downtime and high costs.
 

2022 Citroen E-C4, 357 km range

 
Monthly amount: 2986
Starting rent: 0
Source: Autoco Bærum – Finn.no.

 

Take over existing leasing agreement

Leasing companies allow debtor change – that is, allowing another person to take over an existing lease agreement. The new tenant can take over the agreement once the person has been credit-assessed and has paid a debtor change fee – normally between 4000 and 6000 kroner.
 
Points to consider when taking over an existing leasing agreement:

• You commit to a shorter leasing period and a lower total amount.
• You can extend the number of months and mileage for an additional fee.
• A share of any initial rent accrues to the seller.
• Monthly rent and fees are paid to the leasing company.
• Require a condition report!

 
A tenant who breaks the lease agreement loses any initial rent and may be charged a high fee – equivalent to 6 months’ rent. The seller therefore has everything to gain by getting another person to take over the agreement. The parties cannot change the monthly rent, but it is possible to negotiate how large a proportion of any initial rent to pay. Initial rent and monthly rent must be seen as a whole.
 
If the car is not brand new, it may be easier for the parties to reach an agreement if the seller can present a condition report carried out by the same brand workshop to which the car is to be returned at the end of the lease period. The buyer should not take the duty of inspection lightly. Any damage should either be repaired at the seller's expense before takeover, offset against any initial rent, or paid to the buyer upon takeover. Unless the car is a particularly attractive one, the person interested in taking over an existing lease is in a favorable negotiating position.

The final showdown

When the car is returned, the workshop where the car is delivered goes through the car to uncover faults and damage that cannot be considered normal wear and tear. This is the Achilles heel of leasing. Here, many – especially corporate customers – have experienced being invoiced with unreasonable amounts. What is considered normal wear and tear is based on judgment. Things that often appear afterwards are rust on brake discs, damage to tires, stone chips and scratches on the windshield, moisture in the headlights and taillights. In total, this can amount to tens of thousands of kroner. It can It pays to obtain an independent condition report before delivery.
 

The leasing offers in the post are taken from external sources and are only (good) examples. For the record: Terje's cars is a car blog. We type about cars, but doesn't sell any.

 

Leasing calculator

You can simulate leasing yourself in the calculator. Loan with residual value from Smart money to check the reasonableness of a leasing offer. Interest rates for car loans without equity are between 8 and 9% pa
 

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