Recently, commercial vehicle leasing has become particularly sought after—and Ukraine has not stood on the sidelines of this trend. Commercial equipment (tractors, semi-trailers, dump trucks, concrete mixers, etc.) is needed by a wide variety of organizations, as well as ФОПs and private individuals. Moreover, leasing a truck is much easier and more profitable than taking out a loan for commercial transport. Therefore, many firms offer the option to lease commercial vehicles.
Requirements for clients when leasing commercial vehicles
Both legal entities, individuals, and FOP can lease a commercial vehicle. Any of these clients must meet a few simple requirements:
- The business must have been operating for at least six months to a year (requirements vary by firm);
- Bank account turnovers must be stable, and the business activities must be profitable.
- Equity must be positive.
If you do not meet any of these criteria, the issue can be resolved by a guarantee from another firm or businessman, or by providing collateral. Even in their absence, it is still possible to lease a commercial vehicle—the down payment will simply be higher (30-40% of the truck's value).
Commercial vehicle leasing for individuals
For individuals, leasing is practically the only option for acquiring commercial vehicles. After all, banks typically do not offer auto loan programs for trucks, and a consumer loan may not be sufficient. Moreover, such loans usually have to be repaid within just one year. Meanwhile, leasing companies are willing to provide commercial vehicles to individuals for up to 5 years, while offering a convenient payment schedule. If a private individual wants to lease a commercial vehicle, they will need to provide the leasing company with their sources of income for the lease payments. This could be income from their primary job or, for example, a service contract performed using the specialized equipment being leased.
What cars can be purchased on lease?
You can lease a new commercial vehicle or a used one. The client chooses the make, model, year of manufacture, and even the approximate price themselves. The leasing company will purchase the specific truck the client needs from the seller. However, the firm may have its own restrictions and requirements for the vehicle: for example, the vehicle must be no older than 3–5 years. Leasing Chinese-made commercial vehicles often involves stricter requirements for clients. Some firms do not work with Chinese brands at all, preferring leading European manufacturers. Carefully choose the selling company from which you will lease the truck: reviews for it should be exclusively positive. After all, the supplier chosen by the client undergoes a thorough audit by the leasing company. This reduces the client's risks.
Terms of sale of trucks for leasing
Leasing trucks is usually carried out on the following terms:
- Down payment: 5–40% of the equipment price (depending on the client's creditworthiness).
- Term: 1–5 years (most commonly 3 years).
- Appreciation (markup) from 5% per year.
However, terms are determined individually for each client and are influenced by various factors: the payer's financial stability, the specifications of the acquired equipment, and more. Having a guarantor can help you secure the most convenient terms, which can be significantly more advantageous than a loan for commercial transport. In some cases, lease payments already include insurance, transport tax, registration with the relevant authorities, property tax, and other expenses. This is convenient for the client, as it eliminates the hassle of dealing with additional payments. Therefore, when choosing a leasing company to get a truck from, do not only read reviews but also carefully study the proposed terms, as they vary from one provider to another.