Purchasing fixed assets for a business often requires significant capital investments, which can temporarily freeze the company's working capital. In the modern economy used equipment leasing becomes one of the most effective tools for updating a vehicle fleet or production capacity without diverting large sums from the budget. VTB Leasing, being one of the market leaders, offers flexible financing programs for used equipment and vehicles, which allows entrepreneurs to optimize taxation and maintain liquidity.
The used equipment market in Russia is experiencing a period of active growth, and many companies prefer to purchase time-tested models rather than overpay for new units. VTB Leasing understands this trend and has developed products that allow you to finance up to 90% of the cost of the property. This is especially true for small and medium-sized businesses, where every ruble counts. It is important to note that financing applies not only to passenger cars, but also to trucks, special equipment and even production equipment.
The key advantage of such a deal is the opportunity VAT refund from the entire amount of leasing payments, as well as accelerated depreciation, which can reach 30%. Unlike a classic loan, leasing can significantly reduce income tax. In this article, we will look in detail at how the VTB program for used equipment works, what restrictions exist on the age of vehicles, and how to properly complete the transaction in order to get the maximum benefit for your company.
Conditions for financing used equipment at VTB
The VTB Leasing program for financing used assets is developed taking into account the needs of various business segments. Leasing terms may vary depending on the type of equipment, its condition and the financial situation of the client. The basic parameters of the transaction assume the possibility of financing both individual units of equipment and entire fleets. The minimum funding amount usually starts from 1 million rubles, which makes the product accessible to companies of any size.
One of the main issues that concerns entrepreneurs is the age of equipment. VTB Leasing is ready to consider objects whose service life at the end of the contract does not exceed certain limits. For passenger cars this period is usually up to 10 years, and for trucks and special equipment the requirements can be more flexible, reaching up to 15 years or more. Remaining life also plays a role, but the key factor remains the technical condition and liquidity of the object on the secondary market.
The payment schedule is formed individually and can be adapted to the seasonality of the business. Seasonal schedule allows you to make smaller payments during periods of low activity, and increased amounts during the high season. This helps to evenly distribute the financial burden and avoid cash gaps. In addition, a schedule with grace periods is possible, when in the first months only interest or a minimum part of the principal is paid.
It is important to consider that the leased asset remains on the lessor’s balance sheet until full payment and redemption. This means that VTB Leasing takes on the risks associated with owning the asset, which simplifies the withdrawal procedure in case of default, but also imposes certain obligations on the lessee to maintain the equipment. When purchasing used equipment through leasing, VAT is refunded on the entire payment amount, which significantly reduces the real value of the asset.
Requirements for the age and condition of vehicles
When considering applications for leasing used equipment, VTB specialists pay special attention to the technical condition of the object. Equipment requirements strictly regulated to minimize liquidity risks. The vehicle or equipment must be in good working order, have all the necessary certificates of conformity and undergo pre-sale training. The presence of a valid insurance contract is also a prerequisite for concluding a transaction.
The age of the equipment is calculated at the end of the lease agreement. This means that if you take a 5-year-old truck on a 3-year lease, it will be 8 years old when the last payment is made. There are limits for different categories of equipment:
- 🚗 Passenger cars: up to 10 years at the end of the contract.
- 🚛 Trucks: up to 12-15 years depending on the brand and model.
- 🚜 Special equipment: up to 15 years or more for unique types of equipment.
- 🏗️ Production equipment: is assessed individually based on residual life.
⚠️ Attention: The leasing company will not consider equipment that does not have a PTS (Vehicle Passport) or with disposal marks. It may also be difficult to finance cars that have been in serious accidents or have hidden frame and engine defects.
The condition is assessed on the basis of a diagnostic chart, the results of an independent examination or data from trusted sources. VTB Leasing can offer services for the selection and inspection of equipment through partner networks. This is especially true when purchasing commercial vehicles from private individuals or small firms, where the service history may not be transparent. Checking legal integrity is also included in the mandatory package of procedures.
What to do if the equipment is more than 10 years old?
If the age of the equipment exceeds standard limits, an individual application may be considered. This will require an expanded package of documents, including a fresh opinion from an independent expert on the technical condition and residual life of the units. The amount of the advance payment may also be increased to 40-50%.
Financial parameters: advance payment, term and price increase
The financial model for leasing used equipment at VTB is based on a balance of interests of the client and the lessor. Advance amount is one of the key parameters influencing the final overpayment and the likelihood of transaction approval. For used assets, the down payment is usually higher than for new ones and can range from 20% to 49% of the value of the leased asset. This serves as a guarantee for the company and confirms the seriousness of the client’s intentions.
Financing terms range from 12 to 60 months, and in some cases can be extended to 84 months. The longer the term, the lower the monthly payment, but the higher the final increase in price. Rise in price in leasing, it consists of the interest rate, commissions and cost of services. For used equipment, rates may be slightly higher than the basic ones due to increased risks, but tax benefits often completely cover this difference.
Let's look at the approximate cost structure in the table for clarity:
| Parameter | Value/Range | Note |
|---|---|---|
| Advance payment | 20% - 49% | Depends on the age of the equipment |
| Leasing term | 12 - 60 months | Possible extension |
| Rise in price | from 5% per year | Depends on credit rating |
| Redemption value | from 0.1% | Fixed or market |
The redemption value at the end of the term can be fixed (for example, 1000 rubles) or be a certain percentage of the book value. Often used for used equipment accelerated depreciation, which allows the cost of the asset to be completely written off by the end of the contract term. This provides an additional advantage when calculating income taxes.
Use the calculator on the VTB Leasing website for a preliminary calculation, but remember that for used equipment the final offer may differ after an expert has assessed a specific car.
Necessary documents to complete the transaction
The process of collecting documents for leasing used equipment requires care and preparation. Package of documents is divided into three categories: client documents, transaction documents and leasing documents. For legal entities and individual entrepreneurs, the list may differ, but the basic set remains similar. VTB Leasing values transparency, so all copies must be certified and legible.
First of all, it is necessary to provide the company’s constituent documents: charter, INN, OGRN, decision on the appointment of a director. You will also need financial statements for the last reporting period (balance sheet, profit and loss account). If a transaction is planned with an individual (IP), you will need a passport and a registration certificate. Lessee questionnaire filled out according to the bank’s form and contains information about business activities.
☑️ Checklist of documents for submitting an application
The equipment itself is provided with a PTS (on both sides), STS, a valid diagnostic card and an MTPL policy. If the seller is a legal entity, a sales contract or invoice will be required. In case of purchase from an individual - a purchase and sale agreement. It is important that the PTS does not contain any notes about restrictions or pledges that will not be repaid before the transaction.
⚠️ Attention: The lack of a complete set of documents for equipment (especially PTS) is the most common reason for refusal or delay of a transaction. Make sure that the PTS is original or a properly formatted electronic equivalent.
Advantages of leasing used equipment over a loan
The choice between leasing and credit often becomes a dilemma for managers. However, when purchasing used equipment leasing has a number of undeniable advantages. Firstly, there is taxation. Leasing payments are charged to cost, reducing the income tax base. Loan interest is also taken into account, but the body of the loan is not. Secondly, VAT. When leasing, you refund VAT on the entire amount of payments (principal + interest), and with a loan, only on interest and the cost of the car itself (if the seller is a VAT payer), but the refund mechanism is more complicated.
Secondly, the company's balance sheet. When leasing, equipment is on the lessor’s balance sheet, which does not fully increase your company’s debt burden, although it is reflected in the reporting. This may be important for companies planning to raise other types of financing in the future. Schedule flexibility also plays a role: in leasing it is easier to restructure payments in case of temporary difficulties than in a bank.
The third advantage is the speed and ease of registration. The requirements for the borrower in a leasing company are often softer than in a bank, since the asset is pledged to the lessor. Risk of failure lower, especially for companies with an imperfect credit history but stable cash flow. In addition, leasing companies often take care of interaction with the traffic police when registering equipment.
Leasing used equipment is more profitable than a loan due to double tax optimization: reduction of income tax and full refund of VAT.
Process of registration and receipt of equipment
The procedure for completing a transaction at VTB Leasing is standardized and takes place in several stages. After submitting the application and initial approval, the stage begins valuation of the leased asset. Experts check the history of the car, its technical condition and market value. If all parameters meet the requirements, a leasing agreement is prepared. At this stage, it is important to carefully study all points, especially those related to insurance and liability of the parties.
After signing the contract, the client makes an advance payment. Next, the leasing company transfers the funds to the seller of the equipment. If the seller is a dealer or partner, the process may go faster. In case of purchase from a private person, money can be reserved in the account until the title is re-registered. Insurance is issued simultaneously with the signing of the contract, the policy is transferred to the lessor.
The final stage is the transfer of equipment and acceptance certificates. The lessee receives the car, keys and documents. From this moment the countdown of leasing payments begins. It is important to carry out independent diagnostics immediately after receipt in order to record the current condition of components and assemblies, even if an examination has already been carried out.
Is it possible to buy equipment ahead of schedule?
Yes, VTB Leasing allows for early repurchase of the leased asset. To do this, you must submit an application and pay the remaining amount of the debt (the principal debt minus the already paid parts, taking into account the recalculation of interest, if provided for in the agreement). Early repurchase is beneficial if the company has available funds and wants to save on interest.
What happens to equipment in the event of an accident?
In the event of an accident, you must immediately call the traffic police and notify the lessor. Repairs are carried out at the expense of insurance payments (CASCO). If the equipment cannot be restored, the insurance compensation goes to pay off the remaining debt to the leasing company. The remaining funds (if any) are returned to the client.
Can the equipment be used in another region?
Using equipment outside the region of registration is possible, but often requires notification to the lessor and may lead to changes in insurance conditions. For some types of special equipment there may be restrictions on export abroad or to certain zones without approval.
Is compulsory motor liability insurance required if you have CASCO insurance?
Yes, the presence of a compulsory motor liability insurance policy is a mandatory legal requirement for any vehicle allowed on the road, regardless of the presence of CASCO insurance. The leasing company requires both policies to be provided.
Who pays transport tax?
Transport tax during the leasing period is usually paid by the balance holder, that is, the leasing company. However, the terms of the agreement may provide for compensation of this tax by the lessee. Carefully review the “Costs” section of your contract, as amounts can be significant for high-powered equipment.