Financing & Leasing

At the beginning of the lease contract, a mileage limit is established. This is the maximum number of kilometers the vehicle can be driven during the contract period. For example, 10,000 kilometers per year.

The length of the lease is agreed between the lessee (the customer) and the lessor (the leasing company). Typical contract periods are between one and five years.

The monthly lease payments are calculated based on the agreed mileage limit and the expected depreciation of the vehicle over the contract period and the. The higher the expected mileage, the higher the monthly payment may be.

If the lessee exceeds the agreed mileage limit, additional mileage costs may apply. These costs are usually calculated per extra kilometer and are specified in the contract.

At the end of the contract period, the lessee returns the vehicle. The lessor checks the vehicle's mileage and assesses its condition according to the agreed-upon return conditions. Any damage or excessive wear and tear may result in additional costs.

The lender (usually a bank or financial institution) approves a specified loan amount for the borrower (the customer) to purchase the vehicle. 

The loan term agreed between the lender and the borrower can range from several months to several years, depending on the agreement.

In a linear loan, the monthly installments remain constant throughout the loan term. The total loan amount is evenly distributed across the monthly installments, resulting in equal principal and interest payments each month. WIth each payment, the loan balance decreases.

The borrower pays the agreed monthly installment to the lender. As this is a linear loan, the repayment amount remains the same for the entire term of the loan. Consequently, the loan balance decreases with each payment.

At the end of the loan term and upon full repayment of the loan, ownership of the vehicle fully transfers to the borrower.