Conquering a car is the dream of many people, but those who are in debt often feel that this goal is out of reach. One possible way out of this obstacle is vehicle leasing, which allows you to buy a vehicle without having to make a down payment

What does Vehicle Leasing mean?

Leasing is a leasing contract in which a financial institution buys a vehicle chosen by the customer and makes it available for use for a specified period. 

At the end of the contract, the customer can choose to buy the asset, renew the agreement or return it. This option is widely used by companies, but it can also be an interesting alternative for individuals, especially those with credit restrictions.

No Initial Payment Required

One of the main advantages of leasing is the possibility of buying a car without having to make a down payment. Unlike traditional financing, which usually requires a significant down payment, leasing makes this barrier easier to overcome for those with credit restrictions.

Comparison: Leasing vs. Conventional Financing

• Leasing: No entrance required, making it easy to access the vehicle.

• Conventional Financing: It usually requires an entry of 20% to 30% of the vehicle's value.

Flexibility for installments

In leasingThe installments can be adjusted according to the customer's financial capacity, offering greater freedom in negotiation. In addition, the installments are usually lower than those of traditional financing.

• Comparison: Leasing x Conventional Financing
• Leasing: Allows greater flexibility in the definition of plots.
• Conventional Financing: Usually fixed and higher installments.

Right to Buy at the End of the Contract

Another advantage is the possibility of purchasing the vehicle at the end of the contract, paying a residual value that is usually lower than the market value.

• Comparison: Leasing x Conventional Financing
• Leasing: It offers the option to buy at a reduced residual value.
• Conventional Financing: The asset already belongs to the client once the installments have been paid.
• Summary of Differences: Leasing versus Financing

Feature | Leasing | Financing

Credit Approval | More accessible for those with a negative credit score | More rigid

Initial Payment | Not required | Usually required

Ownership of the Vehicle | Only after the end of the contract | Immediate, although sold to the bank

Operating Costs | Included in the installments | Paid separatelyUsage Restrictions | There may be mileage limits | No restrictions

Total Cost | Can be higher | Can be lower with good interest rates

Disadvantages of Leasing

Lack of Ownership During the Contract

In leasing, the vehicle remains the property of the financial institution until the end of the contract, which may not please those who want to own it immediately.

• Comparison: Leasing vs. Traditional Financing
• Leasing: Ownership of the vehicle belongs to the institution until the end of the contract.
• Financing: The property is transferred to the client after full payment.

Models Available for Leasing

When opting for leasing, it's important to know the most popular models on the Brazilian market. Leasing offers a flexible and more affordable alternative to buying outright, especially in terms of technology, comfort and price. Below are some popular models from different brands that can be acquired by leasing, taking these aspects into account.

• Fiat:
• Argo
• Strada
• Mobi
• Volkswagen:
• Nivus
• T-Cross
• Chevrolet:
• Onix
• Tracker
• Toyota:
• Corolla
• Hilux
• Hyundai:
• HB20
• Crete
• Honda:
• Civic
• HR-V
• Jeep:
• Renegade
• Compass
• Renault:
• Kwid
• Duster
• Nissan:
• Kicks
• Frontier
• Ford:
• Ranger
• Territory
• GWM:
• Haval H6

Possible extra costs

Some leasing contracts may include additional fees, such as maintenance, insurance or other services, increasing the final cost of the acquisition.

• Comparison: Leasing versus conventional financing
• Leasing: It may involve additional costs.
• Financing: More predictable costs.

Kovi: An Affordable Alternative for Negatives

A Kovi operates by offering vehicle leasing with special conditions aimed at app drivers and people with credit restrictions. The company is known for not requiring rigorous credit analysis and for offering flexible plans.

How does leasing with Kovi work?

Choice of vehicle: The customer selects the car from the options available on Kovi's platform.

Contract signing: Conditions are flexible and there is no entry requirementPayment of installments: The customer pays monthly installments as agreed.

Call option: At the end of the contract, the customer can choose to buy the vehicle by paying the residual value.

Advantages of Kovi for the Negative

Easier approval: Fewer credit requirements.

Affordable installments: Plans adjusted to financial capacity.

Quality vehicles: New or used cars, well maintained and safe.

Conclusion

Leasing has emerged as an advantageous alternative for those with credit restrictions, mainly because it doesn't require a down payment and offers flexible payment terms. Compared to traditional financing, this option is more accessible and less bureaucratic. Companies like Kovi make this process even easier, making it possible to realize the dream of owning a vehicle even if your name is negative.

FAQ - Frequently Asked Questions

What is vehicle leasing?

Leasing is a rental contract where a finance company buys the car and makes it available for use, with the possibility of buying it at the end of the period.

What are the benefits of leasing?

The main advantage is that you don't need a down payment, as well as greater flexibility in the installments and the option to buy in the future.

How does it work at Kovi?

Kovi offers leasing with no down payment, less rigorous credit analysis and affordable installments.

Can people with negative credit take out a lease?

Yes, this modality is very viable for those with credit restrictions, due to the more flexible evaluation.

What are the disadvantages?

During the contract, the asset is not yours, and there may be extra costs depending on the contract.

What is residual value?

This is the amount the customer pays at the end if they want to buy the vehicle.

Is leasing cheaper than financing?

The installments tend to be lower, but you have to consider all the costs involved.

Can you return the car at the end?

Yes, this is one of the options at the end of the contract.

What are the requirements at Kovi?

Generally, basic documentation and proof of income are required.

Does leasing affect my credit score?

Not directly, but paying your installments on time can help restore your credit score.