Our customers often ask us if it is possible to buy a car on lease. The answer is yes because the LOA is defined as a Rental with Option to Purchase , but it is not a contractual obligation. Indeed, leasing (LOA in French) is a method of financing a new (or possibly used) car based on leasing and accompanied by a purchase option at the end of the lease, unlike Long Term Rental, which is a classic rental. Explanations.
Lease a car, then buy it by exercising the purchase option, or not: the choice is free
The whole point of leasing is based on its flexibility: you drive in the new car of your choice for a period defined in the contract (2 to 5 years at LIZauto) with the freedom to buy it or not at the end of the contract.
Each month, a monthly rent is deducted from you. This is calculated before the contract is signed, taking into account various criteria by our advisers who carry out an LOA simulation . The amount of the rent is defined contractually according to:
the purchase price of the leased car
May be added to one of the services such as the maintenance service or optional insurance, in particular insurance on the person (Death, Total and Irreversible Loss of Autonomy, Incapacity for work) or insurance on the vehicle (Financial Loss linked to the destruction or theft of the vehicle in addition to your damage insurance).
Throughout the duration of the leasing contract, the owner, that is to say the lessor, is the financial institution. You then have the choice between returning the car or buying it at the end of the lease from its lessor owner. In the latter case, you exercise the purchase option and pay the residual value of the vehicle provided for in the LOA contract.
Buying a leased car: how much will it cost?
You have therefore chosen to buy a car in LOA to become its owner by lifting the purchase option. The redemption value is provided for in the contract and corresponds to the price at which you can acquire the vehicle at the end of the contract. Also referred to as residual value.
The repurchase value in leasing is the estimated value of the vehicle on the second-hand market at the end of its lease.
Is the surrender value fixed or variable?
In the context of a leasing signed with LIZauto, the buyback value of a LOA car is fixed: it is indicated when the contract is signed, so there are no surprises when the purchase option is exercised
The purchase price of the car that you lease at the end of the contractual period may however change on your part because you can modify certain terms of your LOA, during the contract, through two free riders. Depending on your needs, you may wish to modify the annual mileage or the duration of your lease. This is entirely possible by signing two riders (subject to acceptance).
Any contractual change has an impact on the vehicle’s redemption value because the modification of the rental period, the annual mileage and/or the amount of the monthly rents are factors that affect the price of the vehicle on the second-hand market at the end of its term. lease. If for example you choose to increase the annual mileage, the rents will increase but the cash value will be reduced. Conversely, if you want to shorten the duration of your contract, the rents and the buyback value will increase because the value of the vehicle will be higher on the second-hand market (the car will be newer at the end of the contract).
Can you buy a car on lease without down payment (in the form of an increased first rent)?
You can subscribe to a car leasing contract with or without contribution: the contribution will take the form of an increased first rent (20 to 30% of the price of the new vehicle).
The LOA without first increased rent: in this case, the amount of the monthly payments will of course be higher.
The LOA with increased first rent: here, the interest is to lower the amount of the monthly payments throughout the duration of the contract.
In both cases, the financing logic remains the same: the purchase of this leased car will be possible at the end of the contract by lifting the purchase option.
Can you buy a car in LLD?
The LLD, or Long Term Rental , is not a car loan or a method of financing, so it does not allow the purchase of a car. This is a rental service for a new or used car for a period defined in the contract. At the end of an LLD, the lessee has the obligation to return the vehicle to the lessor, unlike an LOA.
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