Car leasing and leasing in general becomes more popular and requested within the last decade. A lot of companies despite of their financial potency can afford to take for a lease such kind of expensive objects as vehicles etc. With this becomes possible to obtain new facilities without reducing financial turnover.
In Armenia companies who provide leasing are basically two main units which are ACBA LEASING and VTB ARMENIA.
Operating leasing in Armenia from the company Naniko for everyone at best options!
There are two types of accounting methods for leases operating and financial lease. A vast majority are financial leases in Armenia. An operating lease is treated like renting payments are considered operational expenses and the asset being leased stays off the balance sheet.
Operational leasing by its duration usually is shorter and it’s more like renting. In the accounting pointing point of view there is no risk of ownership and the payments are considered as expenses and shown and its profit and loss statement. It has just a right to use only all the payments are done by lessor and in this point in short term its better. The lessee pays all the maintenance and insurance costs. But in the contrary the monthly payment is higher than in financial leasing. After the end of the contract the objects is going back from the lessee to the lessor. Basically operating leasing is given to more than one person during his maximum limit of amortization.
Financial leasing in the contrary is more similar to loan which has to be obtained by lessor after the expiration of the contract. After the lessor can be the owner of the rented object. In this point of view it is more beneficial for the companies who tend to lease for long duration
Summing up I can say that there is no obvious advantages in both sides. All depends on duration of leasing, potency and purpose of leasing. But in Armenia is more widespread financial leasing.