Quick sales: an effective script to sell used cars

A personal automobile from a dealer with payment of the full cost is a luxury that not everyone can afford. At the same time, buying a used car in order to save money often turns into a fraud on the part of a private seller. Buying a car abroad at a bargain price and getting it cleared through customs is risky, time consuming and requires a lot of paperwork. There are other reliable ways to reduce the impact on the wallet of drivers where they immediately get an opportunity to drive the automobile they choose. Considera credit and car leasing.

How is credit different from car leasing?

Any car dealer offers credits when the vehicle purchase is registered to be paid in installments and passes to the bank as collateral.

Car dealers conclude agreements with partner banks in order to offer clients more favorable conditions. For example, interest-free payments or no down payment. The main advantages include warranty repairs at the beginning and a fixed price of a car thanks to which the borrower is protected from inflation and price increases. At the same time, credits have their drawbacks:

• often you have to immediately pay 1/3 of the car cost;
• the longer the payment period, the higher the final cost;
• thorough verification and stringent requirements for the borrower;
• in case of a serious delay, it comes to fines and court and the car is confiscated;
• compulsory payment of insurance;
• in the event of an accident, the debt is not canceled;
• limited period of full redemption (3–7 years on average).

The credit is not recommended for people who are expected to have repairs, an increase in expenses for their families and who do not have financial airbags in case of loss of their main sources of income.

Leasing is a long-term automobile rental with the right for redemption at the residual value.

With a credit, only money is transferred to the client while with leasing – a specific property with a range of services for the purchase, policy issuance, support and maintenance. Other differences between leasing and credit include:

• you may return the car at the end of the treaty;
• longer term of financing;
• faster approval of the application;
• credit history is not affected, there is no impact on the processing of loans;
• no need for liquid collateral: real estate/business, etc;
• during the entire lease the car stays the property of the lessor.

Just like credit, car leasing has its advantages and disadvantages. Let us list the main ones.

Advantages of car leasing

• Simple and profitable registration

Company representative conducts all payments for insurance, car services, taxes, registration, technical inspection, accounting in public services. All expenses are already included in the total amount of the car cost, so they are cheaper with initial payments. It is convenient for the client that they do not need to control these matters themselves.

• Lessor solves most problems

In the event of an accident, the lessor takes care of all administrative proceedings, calling a tow truck and receiving money from the insurer. Also, if a factory defect is detected, the company will get it replaced with a new one. At the same time, if the client starts having problems, for example, with creditors, they will not have the right to seize the car.

• Fast deal closing

Experienced specialists use business connections in their work and carry out all procedures according to a well-established scheme, so the client receives the car quickly. As a rule, it happens within 3 days after the documents are submitted and the first payment is made.

• Favorable and flexible approach

The lessor is not interested in late payments, they do not charge fines or increase the car rental price because of this. On the contrary, they try to find a common ground with the client when scheduling payments and can offer them to freeze payments. This is especially important for legal entities whose business profitability depends on the season.

• You can easily change the car

Car enthusiasts can first take the car for a long test drive to make sure that it is suitable for their purposes and does not require constant repairs. If you do not like something, your requirements for the vehicle change, the car wears out or you get bored, you can always exchange it for another one.

The main thing is to choose a reliable lessor with a good reputation. RentSyst CRM system cooperates only with trusted companies and is perfect for a business that needs not just cloud software, but a functional pocket office with access from any device. The system allows you to keep the car rental business under full control and automate leasing company operations. This will make it possible to free up resources for more important purposes like marketing or launching new projects.

Disadvantages of car leasing

Most often, car enthusiasts note the following disadvantages of car leasing:

• any actions like painting or changing the location need to be coordinated;
• you cannot use the car as collateral for credit;
• if the lessor goes bankrupt, creditors can seize the car through the court;
• lease payments are subject to VAT in full.

Conclusion

In general, car leasing is in many ways a profitable way to buy a car or get the necessary property for a business. It is worth analyzing its advantages and disadvantages, since they differ depending on the individual and legal entity.