Today, more and more Ukrainians buy cars without full payment «out of pocket». Falling purchasing power, inflation, changes in income — all make alternative financial instruments like installments, credit or leasing increasingly relevant. In the article, we will compare all three approaches and help you make an informed choice.
Installment: when you don't want to contact banks
Installment — is a way to buy a car with phased payment, without the participation of the bank. For the most part, the buyer concludes a contract with a salon or a specialized company. The down payment is usually between 10% and 50% of the cost of the machine, and the rest is paid over 6–36 months.
you can do without bank checks, income certificates or guarantors;
registration — in 1–2 days, often right at the car dealership;
transparent payment schedule, no hidden overpayments;
there are reliable companies that provide installments for cars with mileage — with full vehicle inspection and legal support.
The service is offered by official car dealerships (Renault, Peugeot, Toyota, etc.), car delivery intermediaries from the USA, multi-brand sites with their own financial programs. Installments are best suited for buying a car with mileage, especially if there is a reliable seller.
Car loan: a banking classic with a serious approach
A car loan — is a classic banking product that allows you to immediately become the owner of a car, paying its value in installments over several years. Unlike installments, there needs to be interaction with the bank, as well as mandatory compliance with formalities.
Features of a car loan:
down payment — from 20% to 50%;
rates — 10–30% per annum, depending on the bank and credit history;
necessary documents: passport, personal identification number, income certificate, sometimes — proof of employment;
almost always — is a mandatory CASCO for the entire duration of the loan.
A car loan — is the best option for those who buy a new car in the cabin and want to immediately become its full owner. But it is worth preparing for a longer registration procedure and additional costs.
Leasing: when ownership is not in the first place
Leasing is often chosen by entrepreneurs, taxi drivers, as well as those who are used to updating cars every 2–3 years. In this case, you do not buy a car, but take it on a long-term lease with the right to buy it out at the end of the term.
How leasing works:
the company buys a car and provides it for you to use;
you pay monthly payments that include depreciation + commission;
at the end of the term —, buy a car (or refuse if you want a new car);
all property belongs to the lessor until the moment of full redemption.
You can do without CASCO and income certificates (in some companies). Leasing involves simple registration for FOPs and businesses. The service is often used by legal entities with tax optimization.
It is important to set your priorities before choosing a financial scheme. Are you ready to pay more every month, but get a car in ownership right away? Do you care about the simplicity and speed of design? Do you buy a car for yourself or for business? How critical is it for you to have a car in your name? The main thing is not just to read the terms, but to calculate the total costs and check the contracts.
