Question 1

What is the appreciation rate in leasing?

Accepted Answer

Appreciation is the lessor's total markup on the financed amount over the full term. For example, 15% appreciation over 3 years means: if the lessor financed 350M sum, you repay 350 × 1.15 = 402.5M sum in equal payments. It is analogous to total loan interest, but calculated differently.

Question 2

How does business leasing differ from a loan?

Accepted Answer

Key differences: 1) The asset legally belongs to the lessor until buyout. 2) In Uzbekistan, lease payments can be included in expenses to reduce taxable income. 3) VAT on lease payments is deductible. 4) Usually fewer financial requirements than a bank loan.

Question 3

What is the buyout value?

Accepted Answer

At the end of the lease, you pay the buyout price and become the owner. This is usually a nominal amount: 1 sum, 1% of value, or a small fixed sum in the contract. In rare cases the buyout is substantial — that is effectively an operating lease (rental).

Question 4

How is the effective lease rate calculated?

Accepted Answer

The effective rate is the IRR (internal rate of return) of the payment stream. With 15% appreciation over 3 years, the effective annual rate is approximately 9–11% — lower than typical loan rates in Uzbekistan, making leasing an attractive tool.

Question 5

What down payment do Uzbek leasing companies typically require?

Accepted Answer

Standard down payment is 20–30% of the asset value. The minimum is usually 10–15%. A larger down payment means a lower monthly payment and less total overpayment. Some companies offer zero down payment programs for reliable clients.

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