What does car financing lease mean?

Financial leasing means that the lessor purchases the leased property from the supplier and rents it to the lessee according to the specific requirements of the lessee and the choice of the supplier. The lessee pays the rent to the lessor by installments. During the lease period, the ownership of the leased property belongs to the lessor, and the lessee has the right to use the leased property.

Financial leasing is a cross-disciplinary and cross-industry industry integrating finance, trade and service. Vigorously promoting the development of financial leasing is conducive to changing the mode of economic development and promoting the integration and development of secondary and tertiary industries.

It plays an important role in accelerating commodity circulation, expanding domestic demand, promoting technological upgrading, alleviating the financing difficulties of enterprises and improving the efficiency of resource allocation. Actively developing financial leasing industry is an inevitable choice for China's modern economic development.

In the next five years, financial leasing will play an increasingly important role in China's economic development, and the financial leasing industry will play an increasingly important role in China's economy. With the sustained development of China's economy and relying on China's increasingly powerful real economy, the financial leasing industry will surely become the mainstream format of China's service industry in the future.

Extended data

Modern financial leasing originated in the United States after World War II. After the second world war, the United States industrialized overproduction. In order to promote their own equipment, manufacturers began to provide financial services to users, that is, to sell their own equipment by installment, consignment and credit sale. Because the ownership and use right are transferred at the same time, the risk of capital recovery is relatively high.

So some people began to borrow the traditional leasing method, keeping the ownership of the sold goods in the seller, and the buyer only enjoyed the right to use, and the ownership was transferred to the buyer at a symbolic price until all the funds raised by the lessor were recovered by rent.

This method is called "financial leasing". 1952, the United States established the world's first financial leasing company-American leasing company (now renamed American international leasing company), which pioneered modern leasing.

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