Leasing Interest Rates.....?

[seejaylk]

hi

is anyone know about the interest rates of lease's or hire purchase's after reducing bank interest rates...?

[D-Devil]

I think its time we start talking bout leasing/loan etc... I have been receiving so many promotional mail on vehicle leasing, seems profitable also. But can some one help people like me on deciding the cheaper leasing option?? and btw, what is the current interest rate on borrowings?

[YALA]

lowest i seen it is 13.92% which is pretty decent compared to the previous years im looking sitting around to see if it drops to 10-11% range before opting for a lease option

[Gayan Weerakoon]

This is a good topic to discuss....Please share the pros and cons of lease vs loan and what are the best options out there......

[zerocool]

lowest i seen it is 13.92% which is pretty decent compared to the previous years im looking sitting around to see if it drops to 10-11% range before opting for a lease option

Really? the lowest interest rate i have seen was 16%. I for one never take any lease , try to get a loan if you can.

[harshansenadhir]

Really? the lowest interest rate i have seen was 16%. I for one never take any lease , try to get a loan if you can.

i think that 13 percent something is floating rate, fixed has never gone down to that closer AFAIK

[jami]

lowest rate is Peopls leasing 12%

HNB 13-14 %

and sanasa bank leasing also have the lowest rates

[Gayan Weerakoon]

Cool do you think the intrest rates will get lower?

HNB is bad service so no point going there.....

[hyacc]

PLC 2425/= per 100000 for 5 years. I've obtained 2 leases from People's Leasing. They provide the best service.

[jami]

yep PLC is best, i dont abt the HNB service,

but try SANASA bank they have a good service and low rates

[NPP]

Cool do you think the intrest rates will get lower?

HNB is bad service so no point going there.....

why do you say so?

please explain...

[Gayan Weerakoon]

There customer care is bad and not as professional as HSBC and NDB

Alot of my friends complain about HNB also there ATM's are shit never works.....

[zerocool]

So if what you guyz say is correct, getting a lease from PLC is better than getting a loan from a bank (ex: interest rate is 15% for a loan at commercial bank)? Something is not right

[harshansenadhir]

So if what you guyz say is correct, getting a lease from PLC is better than getting a loan from a bank (ex: interest rate is 15% for a loan at commercial bank)? Something is not right

wrong, getting a lease means you have to pay VAT with every installment plus stamp duty. Going for a loan would be better. However obtain quotes from several places including a bank which gives loan and see for yourself.

[hyacc]

There customer care is bad and not as professional as HSBC and NDB

Alot of my friends complain about HNB also there ATM's are shit never works.....

Government banks are better than HNB. Even when depositing money we have to wait until they check/approve the transaction to get the passbook back. At standard chartered bank you can even withdraw 1million within a minute . no questions asked.

Also avoid anything related to celinco.

I've heard nations trust leasing rates are cheaper than PLc. But I have no experience with them.

Edited July 15, 2010 by hyacc

[hyacc]

wrong, getting a lease means you have to pay VAT with every installment plus stamp duty. Going for a loan would be better. However obtain quotes from several places including a bank which gives loan and see for yourself.

True. But getting a lease is easier than a loan.

[damika]

Commercial leasing is providing fast & good customer service better than PLC.i have got recently two lease facility from them.i felt CLC rates are acceptable.

[Rohnd]

wrong, getting a lease means you have to pay VAT with every installment plus stamp duty. Going for a loan would be better. However obtain quotes from several places including a bank which gives loan and see for yourself.

Loan through banks is the best option. VAT has biggest role and outdates primitive Leasing. If not paid within 5 days from due date they add interests for those 5 days. Relevant authourities in Leasng companys count Saturdays/Sundays which they close for that & say this is a deadly rule of Central Bank,

[isurujosh]

i am not an advocate of lons for cars for anyone. but if you aint got no other choice and you are hell bent on going for a car then i suggest you go for a personal loan. when you go for lease you have to pay a significant premiuim on insurance and may be you loose some money on some VAT thing also.

[xXx]

If you lease a recon unreg you can save yourself a lot of money on the VAT payments. Make sure the importer is regsitered for VAT.

[isurujosh]

If you lease a recon unreg you can save yourself a lot of money on the VAT payments. Make sure the importer is regsitered for VAT.

is that cheaper than personal loan still? sorry i am quite ignorant about VAT thingy and that is why i am asking.

[xXx]

is that cheaper than personal loan still? sorry i am quite ignorant about VAT thingy and that is why i am asking.

Sorry machang i don't know the exact numebrs. Talk to your importer and see how much of a VAT value he can pass on to you. So you will only pay interest on buying price minus VAT value. Your importer most probably have connections with leasing agents, get him to get a quote for you and compare that with the perosnal loan numbers.

OT : VAT is a very good concept if people know how to use it porperly. But for a country like us where majority of both buyers and sellers don't have much of an idea about taxation it is useless. We just end up paying more taxes (compared to GST)

[isurujosh]

Sorry machang i don't know the exact numebrs. Talk to your importer and see how much of a VAT value he can pass on to you. So you will only pay interest on buying price minus VAT value. Your importer most probably have connections with leasing agents, get him to get a quote for you and compare that with the perosnal loan numbers.

OT : VAT is a very good concept if people know how to use it porperly. But for a country like us where majority of both buyers and sellers don't have much of an idea about taxation it is useless. We just end up paying more taxes (compared to GST)

we are going for a cash deal with a very small amount financed from a personal loan that i took. we wanted to avoid the higher premium demanded by insurance companies for car leases at all cost.

[Gayan Weerakoon]

So looks like personal loan is the best option

Now please recommned the best bank to obtain a loan......

[Sylvi]

we are going for a cash deal with a very small amount financed from a personal loan that i took. we wanted to avoid the higher premium demanded by insurance companies for car leases at all cost.

Sir,

I have leasing with Commercial leasing Their leasing interest at the moment is 14%

for example you take a leaseing for 3 years.

VAT AMOUNT IS DIVIDED TO 36 EQUAL PORTIONS DEPENDING WHAT IS THE VAT% AMOUNT YOU HAVE PAID AMOUNT AND YOU NEED NOT PAY ANY INTEREST FOR SAME

If your leased amount is 1M sellers Invoice says he had paid 20% VAT. THAT AMOUNT TOTALS TO .2M.

Then you pay interest only for .8 M WITH ADDED VAT EQUAL PORTIONS .2M DIVIDED IN TO 36 INSTALLMENTS.

.8M WILL GET REDUCED WITH THE INSTALLMENT GO ON AND INTEREST IS CHARGED TO BALANCE REDUCED CAPITAL AMOUNT ONLY. VAT CHARGE WILL BE SAME AMOUNT ONLY ADVANTAGE IS I DO NOT PAY INTEREST FOR VAT.

I have taken OD facilities also.

I hope this is correct what I pay now if there is an mistake please do correct me.

Like to hear other members comments of above.

Wijesinghe.