Car leasing: purchase, tax and fittings, all the answers to your questions

Car leasing is a form of vehicle financing and use that has become increasingly common among both businesses and individuals. However, there are a number of aspects that are not always fully addressed. Bruno Garelli, Head of Leasing & Rental Customer Relationship Management at Banca Ifis, gives us an overview of key customer questions about car leasing.

I have a leased car. Can I purchase it at any time?

A few clarifications are needed to answer this question:

Every financial leasing contract offers the option of purchasing when the contract expires.
Advance purchase is a right that the consumer protection law grants them on the condition that ownership is directly transferred to them. It is not covered in all other cases (transfer to third parties, legal persons, etc.).

However, the market practice is for leasing companies, in response to a simple customer request, to provide details on the cost of settlement on the requested date. This typically occurs when the user intends to change the leased vehicle, replacing it with a new model/brand. Early termination of the contract in accordance with the new agreement is therefore a frequent arrangement that satisfies both parties.

Who pays the car tax in the case of leasing? How?

In the case of leasing, the party liable for payment of the motor vehicle tax is the lessee, i.e. the vehicle’s user (ref. Law 99/2009), and consequently payment of the tax is the responsibility of the region where the contract holder resides.

Typically, the leasing company offers the option of paying car tax for its customers as an additional service in return for the payment of a small handling fee.

Payment complies with the deadlines and rules stipulated by the relevant region; the following month the amount is billed and charged together with the fee, providing parallel receipts of payment that must be presented in the event of audits by the relevant agencies.

Any fulfilment related to the supertax, if the vehicle meets the criteria, remains the customer’s responsibility.

Drive your business with our vehicle leasing

Find out more

In car leasing cases is there a maximum purchase amount?

Since this is financial leasing, in order for the customer to exercise the purchase option, the purchase amount must be sufficiently less than the expected value of the specific car when the contract expires. Otherwise, the transaction could qualify as an “operating lease” since it would not transfer all the risks and benefits associated with ownership of the underlying asset to the lessee.

Banca Ifis leasing involves the classification of cars (identified by make and range) into different clusters, which are assigned a maximum applicable purchase rate relative to the lease term.

With leasing, is it possible to finance only the outfitting of a car I own?

In the case of leasing, the collateral of the lessor, e.g., Banca Ifis, is based on the ownership of the asset, which, in the event of litigation, can be recovered and placed back on the market.

Consequently, without ownership of the vehicle on which the fittings are placed, it becomes difficult (if not sometimes impossible) to recover them; therefore, both warranty and fungibility are lost; as a result, this type of asset is not considered financeable through leasing.

The diametrically opposite case is when the customer wants to install their own accessories on a leased asset; in this case, any improvements made become an integral part of the vehicle and, in the event of recovery by the lessor, are considered part of it and included in the resale.

Advertising message for promotion purposes. For Vehicle Leasing product contractual terms and conditions, please consult the key information sheets available in the Transparency section of the website www.bancaiﬁs.it.