What is leasing?
Leasing is a financial service, in the result of which lessor transfers rights to lessee to use lease object in return of certain agreement payments.
Leasing companies in Latvia offers their clients various leasing options – car, commercial transport, agriculture machinery, production equipment and other leasing. Moreover, these objects financing options can vary – financial, operating and full service leasing is offered.
Finance leasing is a form of leasing, where in a leasing period client redeems leasing object and in the end becomes vehicle’s owner.
Operating leasing (rent)
Renting is a form of leasing, where client does not fully redeem the leasing object, but is given the vehicle in usage for a certain period of time. During this time, client pays its depreciation cost. Towards the end of the agreement, client is able to choose:
- the agreement, paying for its monthly rent
- to use redemption rights for stipulated residual value
- transmit redemption rights to the third party
- to return good to the seller
Full service leasing
Client gets to use not only leasing object, but also uses other offered leasing company’s benefits. Leasing company instead of you will conduct civil insurance, KASKO insurance, driver and passenger’s insurance, car’s CSDD registration, covers annual transport and inspection expenses, regularly cares about vehicle’s maintenance throughout time period, ensures car’s transportation to/from car service, provides your transport with winter tires (4 units) and other. The expenses that occur for additional stipulated services client repays gradually. These expenses are added up to monthly leasing payments. Even though full service monthly payments are more costly than financial and operating leasing payments, it offers greater comfort.