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Verified Tsikot Member
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April 12th, 2009 11:54 PM #1Toyota motors has given me an attractive offer under the so-called Lease Financing with free insurance, lto, chattel mortgage.
Under this so-called lease financing, are there disadvantages as compared to the bank financing?
I'm afraid there are some hidden charges or unexplained expenses later.
I shall appreciate any comments from my fellow tsikoteers.
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April 13th, 2009 12:08 AM #2
Ang lease financing is you can return the car after the lease contract expires. So you pay them a monthly. Parang rental eh. Unlike bank financing you are paying your monthly to eventually OWN THE CAR. Sa lease its just like a rent pay them your monthly then you can continue to use the car as if its your own. IMO go for bank financing na lang at least in the end you own the car. Ang advantage lang ng lease is mas mababa yung monthly and pag sawa ka na sa kotse mo pwede mo isoli after the lease agreement expires.
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April 13th, 2009 12:11 AM #3
Inaaply na rin nila yung style sa US? Hindi advisable satin yung ganyang scheme.
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April 13th, 2009 12:16 AM #4
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Verified Tsikot Member
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April 13th, 2009 12:21 AM #5
Really. What I heard from the sales was that the car would be under the ownership of Toyota but once I fully paid it, the ownership would be transferred to me. Hmmmm. Iba na to.
But then if it is rental, kalaki naman ang monthly na 15, 373 for the Innova J and my down pa na 165,600.
Anyway, sir Tidus, iba rin yung lease-to-own sa lease financing?
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April 13th, 2009 12:24 AM #6
Ah baka lease to own yan and NOT LEASE FINANCING... Well I haven't inquired since di naman ako interesado I was just assuming my posts based on the thread title...
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April 13th, 2009 12:26 AM #7
just go for bank financing. it will be advantageous for you. do not be swayed by your sales agent's convincing ability.
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April 13th, 2009 10:19 AM #8
Lease financing has its advantage in terms of business perspective.
Kapag naka lease ang sasakyan mo na ginagamit mo sa business, pede mo siyang i-declare as expense sa BIR to get a tax deduction. Hindi pa subject sa depreciation ang leased property kasi hindi siya sa iyo.
Meron ilang lease agreement na pagdating ng expiration ng term ay mag-execute na kayo na deed of absolute sale para maging sa iyo. Yung down-payment mo will be considered as "deposit" or security for any damages pag katapos ng lease or you can apply it as the payment for the deed of sale after the expiration of the term para maging sa iyo na.
So in effect parang bentahan lang din ang nangyari, but you will get the advantage of tax deduction. Beneficial din ito sa nagpapautang kasi kapag hindi ka nakabayad, they can get the vehicle because technically, they still own it unlike in the financing.
Hope it helps.
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April 13th, 2009 10:29 AM #9
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April 13th, 2009 10:44 AM #10
Yup, tama si Robenson. Malaki ang impact ng lease sa books. Normally, motor vehicles have an economic life of 5 years, and you have to amortize the depreciation over 60 months, kung nakapangalan sa company yung assets. Majority of firms kasi who lease vehicles opt for fleet financing, so you can just imagine the depreciation cost of several vehicles in their books.
Another advantage is that normally, interest rate on leasing is computed via diminishing balance, whereas straight-line interest ang bank financing (at least in our case, hehehe).
Of course, if you don't have a business, better go for bank financing.Last edited by Galactus; April 13th, 2009 at 10:57 AM.