what exactly leasing is?

Holy fuck your English.

Wow. The average salary in your country is only like 1400 in CAD. You can't survive worth shit on your own for 1400 a month in Canadaland. The average rent for Canadians on the West coast is like 1200+ a month. You guys must have cheap as fuck housing to be able to spend the rest on car payments.

Anyways. I work in the auto industry.

Leasing essentially allows you to have more car with less risk for less money per month than owning/financing.

You take less risk in several ways.

For example. You and I both get the same Mercedes. You lease it and 5 years and I finance it for 5 years. In 5 years we both put on 100,000 KM. In 5 years my car with 100K KM is at the whim of the market for its value. Your leased vehicle has a fixed future value set through the residual. So you cant get hurt.

With financing I own the vehicle and make payments until the end of the term. After which I get a clean and clear title back in the mail.

With leasing you essentially own several options which you can decide on at the end of the lease term.

Usually, at the end the lease term. You can turn the vehicle in and walk away. You can trade the vehicle against a new one. So basically upgrade. Or if you love the car. You can buy it out at whatever the set value is. Now at the end of the lease term. If the car is worth more than the set future value. You usually pocket the difference. But that is up to the individual lease conditions.

Now the other way you take less risk on a lease is that depending on the car manufacturer. Accidents and things like that may be absorbed by the car company. Essentially meaning that if I finance the same car. Crash it and have it repaired. My value on that car decreases due to the accident. Where as on the lease. The car company may absorb the depreciation. So even if you have an accident. Your future value may not be effected.

Finally, in most general terms. Leasing for shorter terms means less monthly payments then financing.

>>1431567
so can i lease a lambo for 5k every month for 1 year and then just give it back afterwards?

>>1431574
There's also down payment, maintenance (sometimes it's free), gas prices, etc.

Leases are usually 3 years in the US, but I don't know about Poland.

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They lease the car on the company thus they basically buy the car with untaxed money.

Also
>wanting the worst possible depreciating asset
Wypierdalaj

>>1431567
Well thanks for the answer buddy,and yeah housing in eastern/central yurop is cheap, but I know the difference between financing and leasing but still don't get it how someone who barely manages to pay all the bills is able to sign brand new porsche for his unknown and clientless company


I know that my English isn't perfect but is it really as bad as you say?

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>>1431401
At least in Germoney our company cars get big tax advantages.
If your company gives you a company car that you also use in your free time you only have to pay taxes on 1% of it's value per month.

(E.g. you get 70k€ company car that you can also use privately. This only raises your income by 700€ per month resulting in ~300€ of taxes per month you have to pay more.

>>1431666
>know that my English isn't perfect but is it really as bad as you say?
Nah, it's perfectly comprehensible.

t. Amerifat

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>>1431681
Of course the company itself still has to come up with the money to finance the monthly rates for the car. ;)

operating leasing or financial leasing?

first one is basically like renting the car.
second one is a bit more complex, but it boils down to renting a car with the plan (or at least the option) to purchase it at the end of the lease.

in both cases you can expect to pay more than if you had bought the car. they can run the numbers way better than you and believe me, they're not running a deficit.

>>1431681
Just ran the numbers again. (It's a bit more complicated than I stated above.)
If your company gets you a 70k€ car it will cost you 1225€ per month.

>>1431401
>i really want to know how is it possible that in 2016 almost every third car i can spot on the road is some kind of fucking new mercedes or bmw worth more than 40k$?
Probably most cars are held as company fleet cars.
Mercedes C & E class and BMW 3 and 5 Series leasing cost for companies are like 300-500€ per month.

Always read the small print, there may be harsh penalties for missed payments, or for damage/excess milage at the end of the lease.
If it sounds too good to be true it usually is.

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>>1431791
>harsh penalties for missed payments, or for damage/excess milage at the end of the lease.
That's part of the leasing business modell ;^)