Traditional credit removed by leasing

The great fashion of LOA continues to weigh in the automotive sector. But recently, it has been trying to integrate into real estate offers.

Leasing with an option to purchase is a trend that is very entrenched in the automotive sector. The practice is to pay monthly rent in exchange for renting a property that remains the property of the lender. Only, a clause provides that the tenant can decide to buy the car definitively, in this case for the automobile market, at the end of the contract.

Traditional credit removed by leasing

Traditional credit removed by leasing

And this rental has enjoyed rapid growth since its launch and it continues to grow in importance from year to year. Indeed, the French welcomed this new acquisition method to the point of relegating consumer credit to the background. Although the LOA is more or less an ordinary credit in practice.

A principle equivalent to renting a vehicle

Now, leasing is heading to new horizons by taking over the real estate market. Actors such as Quasiaqui.fr are effectively trying to combine this offer with habitats. However, the practice is not new since the legislation has already provided for this for several decades and hundreds of such operations are carried out each year.

But how do the mechanisms of LOA work with housing? In practice, the principle is almost identical to renting a vehicle. The tenant will pay monthly payments and decide during or at the end of the contract, which can range from 12 to 60 months, to acquire the property.

For this, the transaction price will subtract part of the amounts already paid each month. Which contributes to creating more or less a contribution.

Be sure of your commitment before acquiring

For the tenant, leasing will allow them to take the time to think before buying the accommodation definitively. He will be able to judge whether he really meets his expectations. But we must expect in return to pay more for the property in fine with fees punctuated by the intermediary.

If, however, the tenant decides not to activate the purchase option, then 2% of costs will have to be paid as well as possible penalties in the event of deterioration or unpaid rents. The seller will get regular income while having a chance to sell his property by taking advantage of the process for free.

The fact remains that real estate LOA professionals focus their actions on making the practice more visible. Indeed, this type of operation is above all associated with the automobile market in the consciousness of users, at least as far as French territory is concerned.

But the players remain convinced that a real business remains and that demand can respond favorably to the call. How to proceed? Communicate with the general public and sensitize real estate agencies that would play the role of intermediary.

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