Question 1

What is the key difference between leasing and a car loan?

Accepted Answer

With a loan you immediately become the car owner. With leasing, the leasing company remains the owner until full buyout or return. Monthly lease payments are usually lower than loan payments, but at the end of the term you have no asset. For legal entities leasing is tax-advantageous: payments go to expenses.

Question 2

When is leasing more beneficial than buying?

Accepted Answer

Leasing is beneficial if: 1) monthly payment matters more than total cost; 2) you are a legal entity and write off payments as expenses; 3) you want to change cars every 2–3 years without the hassle of selling; 4) the car is needed for business. For individuals, buying on credit is usually cheaper in terms of net costs.

Question 3

What is the buyout value in leasing?

Accepted Answer

At the end of leasing you can buy out the car for a fixed amount. In Uzbekistan the buyout price is usually 1–15% of the initial value. If you don't buy out — the car is returned to the leasing company. The calculator calculates the lease + buyout option separately.

Question 4

How do leasing companies set the monthly payment?

Accepted Answer

Basic formula: (car value − down payment − buyout price) / term + price increase (lease rate). In Uzbekistan the price increase for UZS leasing is 18–25% per annum. For accurate comparison, enter the actual monthly payment from the leasing company's offer.

Question 5

Is VAT taken into account in leasing for LLCs?

Accepted Answer

Yes, for legal entities leasing payments include VAT (12%), which can be offset with an invoice. This is another tax advantage of leasing over buying for business. The calculator calculates without a tax deduction — for personal cars or individual entrepreneurs.

Parameter	Buy	Lease
Down payment	60 000 000 UZS	40 000 000 UZS
Per month	5 202 902 UZS	4 500 000 UZS
Total paid	247 304 472 UZS	202 000 000 UZS
Net cost	120 140 012 UZS	202 000 000 UZS
Car at end	Yours	None

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