What is lease financing?

**Robenson** · December 31st, 2009 06:40 PM

Originally Posted by alwayz_yummy

ang explanation sa akin ng mga kakilala ko sa toyota balintawak ay: ung name will be under "TFS/<your name>"

nung pinacompute ko, sa CMF at release of mortgage palang save ka na...iba din rate ng lease-to-own financing, mas maliit than bank... kaya mas makakamura ka...parang may nagpahiram lang sayo ng pang-cash..

disadvantage lang is that, you are stuck with the car... meaning di mo pwede ibenta ung unit while under ka pa ng lease term...unlike retail financing(aka bank)

and its a "lease to own" financing, and only toyota offers it...pag bayad ka na, ittransfer na sa name mo..

about sa "other charges" ikaw na magsshoulder ng registration and insurance renewals.. and siyempre comprehensive yan

Pwede mo naman ibenta with consent of the Lessee pero dapat syempre bayaran mo lahat ng natitirang terms and this will come from the proceeds of the sale.

For those who wants to buy a car, this might help http://panyero.wordpress.com/2009/12...my-car-part-1/

**alwayz_yummy** · December 31st, 2009 07:34 PM

kung ganun, masmabusisi lang magbenta..explanation kasi sa akin yan ng kakilala ko sa toyota balintawak.

**Robenson** · December 31st, 2009 08:45 PM

Originally Posted by alwayz_yummy

kung ganun, masmabusisi lang magbenta..explanation kasi sa akin yan ng kakilala ko sa toyota balintawak.

Pareha lang din, kasi you'll do the same steps as financing, i.e, pay-off the account before releasing the mortgage.

Hindi mo rin kasi mabebenta basta-basta kahit galing sa financing or bank kasi may nakalagay na "encumbered" sa ORCR. So yung bibili gusto syempre matanggal muna yun and the only way to do that is paying-off the account.
Ang original ng ORCR ay nasa bank din pala so kahit nasa name mo ang OR/CR ng car, limited din ang power mo to dispose the unit as same as leasing.

**cktlcmd** · December 31st, 2009 08:54 PM

What about expenses on the car like repairs ???

**Robenson** · December 31st, 2009 09:30 PM

Originally Posted by cktlcmd

What about expenses on the car like repairs ???

Well syempre its on you. Parehas rin kung bibili ka ng car through bank or financing. In reality ginamit lang ang "leasing" para hindi muna malipat ang name sayo kasi yung sale will take place at the end of the leasing contract. At syempre, to avoid mortgage fees. Kaya nga sabi ko, nagkakatalo lang kung sino ang mas mura.

Kahit naman nasa name mo ang car, kung hindi ka magbabayad, kukunin parin ng bank yan by force to pay for your obligation. Same as leasing and with more reason since nasa name nila ang car. Hope this helps.

**cktlcmd** · December 31st, 2009 09:53 PM

Originally Posted by Robenson

Well syempre its on you. Parehas rin kung bibili ka ng car through bank or financing. In reality ginamit lang ang "leasing" para hindi muna malipat ang name sayo kasi yung sale will take place at the end of the leasing contract. At syempre, to avoid mortgage fees. Kaya nga sabi ko, nagkakatalo lang kung sino ang mas mura.

Kahit naman nasa name mo ang car, kung hindi ka magbabayad, kukunin parin ng bank yan by force to pay for your obligation. Same as leasing and with more reason since nasa name nila ang car. Hope this helps.

OK... because the last time I inquired back in the US, the car company shoulders all the repairs. Thanks.

**Robenson** · December 31st, 2009 10:10 PM

Originally Posted by cktlcmd

OK... because the last time I inquired back in the US, the car company shoulders all the repairs. Thanks.

Baka insurance nag-shoulder boss? Or, talagang strict leasing contract yun? I mean at the end of the contract they will not sell you the car. Yung leasing facilities kasi dito involving cars is contract to sell talaga in reality.

**tidus1203** · December 31st, 2009 10:44 PM

Yung totoong leasing in mature countries like in the US talagang LEASE lang. You borrow the car pay your monthly rental and at the end of the term you return the car or if may clause you can renew the lease! The dealer charges you a monthly fee like a rent to use the car. The fee probably includes depreciation already into account! But the car is never intended to be yours unlike here lease financing kuno pero parang pareho lang sa regular mortgage financing, accounting tricks na lang habol ng companies why they go for lease financing as opposed to mortgage financing...

**cktlcmd** · December 31st, 2009 11:15 PM

Originally Posted by Robenson

Baka insurance nag-shoulder boss? Or, talagang strict leasing contract yun? I mean at the end of the contract they will not sell you the car. Yung leasing facilities kasi dito involving cars is contract to sell talaga in reality.

From what I remember... they said all repairs. I don't think it's the insurance though. Plus it is still up to the person if he/she wants to buy the car in the end. This is why some people who prefers driving a different brand new car each year lease in the States.

But as Sir Tidus1203 pointed out... here in the RP there is no difference.

**Robenson** · January 1st, 2010 10:58 AM

Originally Posted by cktlcmd

From what I remember... they said all repairs. I don't think it's the insurance though. Plus it is still up to the person if he/she wants to buy the car in the end. This is why some people who prefers driving a different brand new car each year lease in the States.

But as Sir Tidus1203 pointed out... here in the RP there is no difference.

Yea, that is what im trying to say at the very start.