Financial leasing is essentially a loan to finance the purchase of a new vehicle, the common repayment period being 5 years (60 months). During the loan period the vehicle is registered in the name of the financing entity and upon repayment of the loan, the client has the option to purchase the vehicle at 1% of the vehicle price. In most client financing transactions, the client is asked to pay a deposit of at least 15% of the value of the vehicle.
To initiate the transaction, the client will be asked to present a comprehensive insurance policy to cover the car. During the whole period, the client will perform the treatments and repairs at his own expense, get full insurance coverage and will bear any impairment of the value of the vehicle. Benefits of financial leasing for businesses and companies are the non-bank loans, asset accumulation and accelerated depreciation.
Note: Cal Auto's Business Department provides consultation on financial leasing terms only to companies and businesses. Private clients should contact the Car Sales Department to clarify the terms for clients who are not a company or business. Businesses large and small can enjoy a personal consultation with our leasing consultants, and in this way ensure that their next car rental deal will include the vehicles best suited to the nature of their activities and their specific needs.