Frequent Is Leasing a Car in Spain?

In general, in Spain, leasing is often used for real estate. Of all the leases made during 2010, only 12% was used to purchase cars.

When purchasing a vehicle, this method has three main advantages. First, it requires a significant initial investment, since the lease covers the total amount of goods we want to buy. Just the beginning you must sign the lease and agreed to pay the first month.

Secondly, leasing has tax advantages because the monthly installments paid are deductible for property. If a freelancer or a company buys a vehicle, plus maintenance costs, you can only deduct a percentage of their income for amortization of the acquired property. In contrast, in the case of the monthly leasing costs are considered, so we may deduct from their income during the contract.

Finally, leasing contracts is not required for final purchase of the vehicle. In case of bankruptcy or financial difficulties, you can cancel the contract and return the vehicle to the leasing entity, as long as it is in perfect condition.

However, in a lease the customer bears all costs associated with the operation and maintenance of the vehicle: If you have a breakdown or accident shall bear all costs of repairing the vehicle. Therefore it is very advisable to hire a full insurance because any damage caused to the vehicle such as a sheet or grated in an impact on the windshield, not entail the acceptance of the vehicle by the leasing entity.

An interesting alternative to leasing is the "lease", which comes to rent to a previously agreed price. This method is very similar to leasing, with the difference that in this case the lessee is responsible for all costs related to the vehicle, including full insurance, vehicle maintenance, payment of the ITV and even the management of fines incurred (but not payment). Although, obviously, the monthly fees are higher than with the lease, there is the advantage of not having to worry about bills.

As leasing is a financing method is often used to acquire all kinds of goods, the "renting" is often used specifically for vehicles. Both leasing contracts such as "renting" must be managed by a commercial bank. However, your car dealer will provide access to such entities and inform you about the best options available.