Today, more and more Ukrainians are buying cars without full payment "out of pocket." The decline in purchasing power, inflation, and changes in income make alternative financial instruments, such as installment plans, loans, or leasing, increasingly relevant. In this article, we will compare all three approaches and help you make an informed choice.
Installment Plan: When You Don't Want to Deal with Banks
An installment plan is a way to purchase a car with staggered payments, without the involvement of a bank. Most often, the buyer enters into a contract with the dealership or a specialized company. The initial payment usually ranges from 10% to 50% of the car's cost, while the remainder is paid over 6–36 months.
you can avoid bank checks, income statements, or guarantors;
processing — within 1–2 days, often directly at the dealership;
transparent payment schedule, with no hidden overpayments;
there are reliable companies that provide installment plans for used cars — with full checks of the vehicle and legal support.
The service is offered by official dealerships (Renault, Peugeot, Toyota, etc.), intermediaries for importing cars from the USA, and multi-brand platforms with their own financial programs. An installment plan is best suited for purchasing used cars, especially if there is a reliable seller.
Car Loan: 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 for its cost in installments over several years. Unlike an installment plan, this requires interaction with a bank and mandatory adherence to formalities.
Features of a car loan:
initial payment — from 20% to 50%;
interest rates — 10–30% per annum, depending on the bank and credit history;
required documents: passport, tax ID, income statement, sometimes — employment confirmation;
almost always — mandatory comprehensive insurance for the entire loan term.
A car loan is the optimal option for those who are buying a new car from a dealership and want to immediately become its full owner. However, be prepared for a longer processing procedure and additional costs.
Leasing: When Ownership is Not a Priority
Leasing is often chosen by entrepreneurs, taxi drivers, and those who are used to updating their cars every 2–3 years. In this case, you do not buy the car but take it on long-term rental with the option to purchase at the end of the term.
How leasing works:
the company buys the car and provides it for your use;
you pay monthly installments that include depreciation + commission;
at the end of the term — purchase of the car (or refusal if you want a new car);
all property belongs to the lessor until full purchase.
You can do without comprehensive insurance and income statements (in some companies). Leasing provides simple processing for individual entrepreneurs and businesses. The service is often used by legal entities, with tax optimization.
Before choosing a financial scheme, it is important to determine your priorities. Are you ready to pay more each month but get the car in your ownership right away? Is simplicity and speed of processing important to you? Are you buying a car for yourself or for business? How critical is it for you to have the car registered in your name? The main thing is not just to read the terms but to calculate the total costs and check the contracts.
