The Future of Car Ownership That No One Is Talking About

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  • The Booster Labs team

The Future of Car Ownership That No One Is Talking About

Updated: Feb 18, 2019

Leasing is an important and widely used source of financing. It enables entities, from start-ups to multinationals and even individuals to acquire the right to use property without making large initial cash outlays. In Booster Labs, we are interested in operative leasing because we believe it is a gateway product to the future of car financing where car ownership and usage will be decoupled completely. In this article we want to show you why we decided to dedicate our time to create a new portal Leasinguj.sk. On Leasinguj.sk you will be able to find specific cars for operative leasing no matter if you are a company or an individual.



What Is Operative Leasing?

Operative lease is a form of a long-term lease of a vehicle that is the property of a leasing company. Long-term lease of a vehicle is usually complemented by a wide range of additional services that can be chosen by the client. Ownership of the asset remains with the leasing company and the asset will either be returned at the end of the lease, when the leasing company will either re-hire in another contract or sell it to release the residual value.   Or the lessee can continue to rent the asset at a fair market rent which would be agreed at the time.



Advantages of Operative Leasing


Apart from the fact that operative lease represents the collection of all necessary services provided for monthly payments, it brings more advantages you might not be aware of:

  • Flexible length of the lease - the length of the lease depends on the client. Length of the lease is typically from 24 to 48 months

  • Lessee does not finance the whole value of a car - during the lease only the difference between purchase and residual value of the vehicle will be paid

  • Leave the sale of the used car to leasing company - when the operative lease ends, the leasing company sells the used car. So lessee does not have unnecessary worries.

  • Time and administrative costs saving - leasing company normally does everyday operations and procurement instead of the client, so no need to worry about changing your tires ever again!


Leasing companies tend to offer extra value add as a way to distinguish themselves from the competition. These extra advantages or services differ from a leasing company to a leasing company. It might include all kinds of insurance, non-stop assistance, alternative vehicle in case of a breakdown or crash, repairs and maintenance such as changing tires or oil.




Is Operative Leasing Common in Slovakia?


Despite of all the advantages written above, and the fact that operative lease has been in Slovakia already for 15 years, its share is still below the level of western countries. In some countries, such as Netherlands or Germany, the share of financing via operative lease is sometimes more than 50%. In Slovakia this share is 20% of all financing, so considerably lower than in western countries. Even though according to statistics, the share increased in past 2-3 years, it is still lower than it could be.


The reason is understandable. First of all, Slovaks generally prefer ownership of a property to leasing or renting and vehicles are not an exception to this rule.


Second of all, leasing companies still do not understand behavior and motivation of their customers. Operative lease is often not explained properly, customers are afraid of hidden fees and other hidden snags and its value is not communicated in understandable way.


Leasinguj.sk


At Booster Labs believe that operative lease is the future of financing a car; paving the way to decoupling ownership and usage.That is the reason why we created project leasinguj.sk where customers can find the best operative leasing offers from different leasing companies. Customers can check, compare and choose the best suitable offer for them.


Our vision is to simplify the operating lease space and create a marketplace connecting customers with various car financing offers in a transparent and comparable way.


And not only that! Our blog offers information about operative lease, other forms of leasing or even information about electric cars. We want you to understand this trend and help you to choose the best offer that suits you.



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