A brief discussion on the similarities and differences between car financing leasing and car consumer credit

A brief discussion on the similarities and differences between car financing leasing and car consumer credit and buying a car，It has become a common thing for modern people，With the increase in demand for car purchases，There are endless ways to buy a car。In addition to buying cars with cash，Car loan、Financing a car has also become the first choice for some people who are strapped for funds.。

According to the China Automotive Online School，2025In 2017, 72% of Chinese consumers purchased cars via cash.，The number of people buying cars through consumer credit accounts for 25% of the total number of people，The number of people buying cars through financing (including financial leasing) accounts for 3% of the total number of people，In comparison，The latter two car purchase payment models, which are relatively popular in developed countries, account for a relatively small proportion of my country’s car consumption.，It has huge potential。

With the fulfillment of my country’s commitment to market entry and the continuous opening up of the automotive financial services sector,，Huge market potential and services from foreign auto financial institutions

Advantages

It will definitely promote the development of two automobile consumption financing service models: financial leasing and consumer credit.。Therefore, a comparative analysis of these two types of automobile financial services is conducted.。

one、common ground

1. The basic characteristic of the same creditor-debt relationship is "pay back debts"，That is, according to the contract，Repay principal and interest on schedule，In this respect they are the same。
2. Ease the contradiction between demand and purchasing power. Car consumer credit and car finance leasing are two installment payment methods for car purchase.，Will alleviate the contradiction between potential demand and actual purchasing power of consumers。
3. The returns are higher than the one-time payment for buying a car, even though the total rent and total principal and interest are higher than the car’s selling price.，But as a large-ticket consumer product, cars，tend to depreciate faster，Generally, depreciation after 4 years is 50%。，If the buyer reinvests the one-time payment for the car，The rate of return is generally higher than the interest and handling fees saved by purchasing a car in one lump sum.。

two、Differences

1. Different transaction vehicles, financial leasing is based on the subject matter，i.e. car，main object；Consumer credit is mainly based on currency。
2. Financial leasing with different ownership means that the ownership belongs to the lessor；Consumer credit transfers ownership of the goods to the buyer upon delivery or entry into force of the contract。
3. The transaction structure is different. Financial leasing involves three parties.、two contracts；Consumer credit is a buyer-seller、sales contract。
4. Financing leasing can achieve up to 100% financing with different financing amounts.；Consumer credit is generally equivalent to 70%-80% of the car purchase price。three、The characteristics of car finance leasing can be seen from the above similarities and differences.，for creditors，Under the financial leasing model，The car lessee shall pay the rent in full，to own the car，Therefore, throughout the lease period，The title of the car belongs to the lessor。

Once the lessee defaults，Then the lessor can terminate the financial lease contract based on the car ownership status.，car repossession。Secondly，If the lessee becomes bankrupt during the lease term，Cars are not part of bankruptcy estate，Lessor can act against third party。therefore，Under the car finance leasing model，Actual creditor risk is lower。For car dealers，Those who choose to buy a car through installment payments are often young people with advanced consumption awareness.。

Although such people have considerable income prospects，However, due to current income limitations，Nor does it meet strict credit conditions，This will make it difficult for them to meet their car purchase needs through consumer credit。Financial leasing mainly focuses on the selection of the subject matter of the lease.，Qualification conditions for consumers are relatively relaxed，Able to meet the needs of contemporary young people，thus boosting car sales，Increased the revenue of car sellers (Tang Yu Enterprise Management-Long Xi)。

for consumers，Financial leasing cars can achieve zero down payment，And compared with the term of consumer credit (generally within 3 years)，Relatively flexible in terms of installment payment period，Up to 10 years。But from

cost

point of view，Compared with the car loan products launched by banks,，total

cost

Want more。

If the consumer object is a company that uses cars as a means of production，Depreciation can be accelerated during the lease period；Minimum lease payments are fixed in、difference

cost

chemical and other accounting treatments，Tax benefits for businesses。

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