Frequently asked questions
Which criteria should I meet in order to be able to receive the lowest possible leasing interest rate?
Leasing company evaluates each client separately. Interest rate depends on following criteria: positive credit history, net salary (salary after wage tax), leasing object (the interest rate for an older car might be higher than for the new one).
What should I do in case I am not able to come to a leasing company or bank to make monthly payments during vacation?
Firstly, we advice each client to consider most favourable payment method, where in most cases physical presence is not compulsory. These days Latvian banks offer:
- entering into the contract, set the automatic bill payment;
- make Internet payments;
- make payments at any Latvian bank
I have lost the job, though, I hope to find new one in the next few months. However, in the nearest future I will not be able to make monthly payments. What should I do?
You should definitely ask leasing company, so you can find mutual solution for this problem.
What should I do in case the car I leased was stolen or someone broke it?
- We advice to learn about insurance company’s requirements and nuances at the Latvian Insurance association homepage, http://www.laa.lv/pub/?cmd=nedzivapdros&vid=8 or at your insurance company!
- Without reference to whether a client can use or not the leased object, he must continue his payments according to the terms of the contract. It mostly relates to the cases in which the object was stolen or completely wasted.
- Leasing company must be informed in written (application) form. The information about who is notified about the situation (the police, insurance company), circumstances, and possible losses is also required.
- Since the leasing company in the insurance policy is considered as a reward receiver, then insurers, after decision making regarding actions towards the car, write an inquiry to the leasing company about reward receiver.
Onwards two options are available:
- Money is transferred to the service’s account, where car repair is done;
- Money is transferred to the leasing company account.
Am I allowed to make all the payments before the end of a contract period?
Sure, leasing company envisages such option. If a client wants to redeem the car earlier, then he must write a statement with a wish to redeem leased object earlier. After the statement is received the decision is made whether to allow redeeming the contracted object earlier. When the decision is made, leasing company’s accountant writes final bill. Client must pay the final bill (as well as the debt, if such occurs). After bill’s payment, leasing company’s accountant writes product’s invoice-billing, if client is a legal entity. Then acceptance/transfer acts are made, on the basis of which CSDD re-registers the car at the name of client.
Am I allowed to go abroad with the leased car?
Sure, during lease period you are able to go abroad with the car. In order to go abroad, you are required to receive respective authority from leasing company. To issue the authority without any delay, we advice to make sure that you do not have any debt in leasing contract and that your car’s KASKO insurance policy is still active – it is paid and functions in the place you are going to travel.
How KASKO insurance policy must be set?
- policy must be concluded at the accepted insurance company
- in the policy, leasing company must be mentioned as a reward receiver (owner)
- car must be insured at the market price
- car must have full KASKO cover (for example, in case of road accidents, theft, driving away, fire, environment disaster, vandalism and other risks)