Why Olim Can Lease Cars Easier Than Financing

A lease company is not loaning money.  They are agreeing to lend the use of their property but will retain ultimate control of that property. This is not a negative, BTW, since cars are depreciating assets.

The lease provider’s concerns are threefold. Does the person have the capacity to fulfill the scheduled payments? Will they take care of my asset? If there is damage, are they likely to be responsible and bring it back to an acceptable condition?

The same dynamic applies in housing, you can rent a house or an apartment easier than you can buy one, if the landlord feels these 3 questions can be answered in the affirmative.

There is a minimum threshold that a lease provider requires. They want to see assets here. Your foreign credit rating abroad has no standing here.  Look at it from the other side of the table with these 2 players (UK) and (US). 

UK comes to America, wants to buy or lease car, and tells US I have an excellent credit rating back home. Everyone knows me. Here is documentation of my assets in the most highly regarded and stable bank in my home country.  US’s position is wow, that is impressive.  I understand the UK credit scoring situation. I understand your asset documents, BUT, if heaven forbid, you don’t keep up the payments or if you leave and go back to your home, what recourse do I have?  I cannot seize assets or impose payments in a foreign country.

Basic Requirements

1.Citizenship is vital. it’s not an absolute;  there can be extenuating circumstances, but for the sake of this conversation, let’s call it an imperative.

2.Move some of your liquid assets to a local Israeli bank account. If you simply open account here to receive your Olim benefits this will do nothing to advance your request for credit.   

3.Provide documentation that you have income from sources. Either local or abroad is fine.

And be prepared to increase the down payment – directly reducing the monthly payments. This is not an absolute either. Depending on account balance, length of time the account has been open when applying, and most importantly, if there is activity on the account, both deposits and withdraws, the possibility of an increased down payment fades.

Leasing and Its Perceived Black Eye

Leasing and Its Perceived Black Eye

It’s ironic that leasing has such detractions associated with it, when in reality it’s probably the most useful tool we have to maintain a vehicle for our personal use.  We have listed three reasons we think leasing gets a bad reputation from those not familiar with the benefits.

Non-Ownership – It’s possible that there is a comfort level we experience with ownership, which is absent in leasing, that is off putting; however that comfort or familiarity comes at a price.  With ownership you experience a brisk depreciation of your asset and must you engage in the process of selling the vehicle when it has completed its service.

You must ask yourself what you are trying to achieve.  Do you want to own another asset, or do you want to make use of an asset in the most economical way possible?  If it’s the second, then ownership is not necessarily the best option.

Remember this: no one really buys a car. They really buy its use, which is why as soon as its usefulness is diminished they sell it.

No equity Build-up: This is a big misconception to which we devote a full page. It’s called “Elephant in the Room and No One is Talking About It” please visit that page. It should clear some of the reservations people usually voice.

Common Misuse of the Program:  Maybe it’s because leasing was initially designed by manufacturers to move an ever price-increasing inventory, or in our opinion, the reluctance to considering leasing is a result of what the popular western culture morphed leasing into.  Pop culture used the affordability to enhance their perceived net worth, to look more affluent.

Leasing made it possible for someone who could normally only afford a Toyota to drive a Lexus, or if you had a Nissan Maxima level salary you could now drive an entry level Infinity.  We call this “plastic fantastic” because it’s all about the show, but it’s not the same here in Israel.

In Israel we live within a more reality-based existence, we don’t experience the same “keeping up with the Jones/Cohen’s” phenomenon that we did in the west.  Here leasing is more a function of protection of assets than that of embellishment of financial or social stature.

Our income generation here in Israel is not at the same level as it was in the west and our cost of living is more.  Leasing gives us the ability to pay only for the use of the car and protects our cash reserves at the same time.  Down payments are less as are the monthly payments.  Since leasing is for new or 1-3 year old used cars we experience less repairs, enjoy better fuel consumption’s and best of all the depreciation that all cars experience are no longer factors. Visit our site please at this link Ianglo Leasing to continue your investigation of this fantastic financing option.

Acclimating to Life in Israel

Making Aliyah was the best choice I could have made for my family; however some of my initial decisions in the process of settling into daily life here left room for improvement.  One such decision was waiting too long in acquiring a personal car.

Now to my defense there was not a service like ours, Ianglo-Auto-Association, at the time; a service geared to assist English-speaking Olim in buying and financing automobiles in Israel.

Security Issues in 2002 was a Factor – But the Real Reason Was…

We made Aliyah in 2002 and experienced different security issues than we now endure.  Rock throwing and the occasional use of bullets on private vehicles in the Judea Samaria area were more prevalent then.  Looking back however I think I let that issue shoulder the weight of my reluctance to buy a car more than the real reason which was – I did not want to diminish our savings by such a large sum.  Olim quickly realize there are enough other things waiting in the wings that will converge to reduce our savings, and financing a used car was not an option, or so we were told it was not.

Ironically my reflective lament is not so much the loss of convenience or the time savings we would have had in not relying on buses and taxis.  The regret is the absence of a familiar part of family life that I could have provided my wife and kids to make their and my transition into our new life more comfortable.  Had we known then what we know now we would have done it much differently.

As Olim we face major changes in all aspects of our lives.  It would have helped all in the family to have that familiarity available earlier than we did.  We really felt like onlookers or “also-rans” until we bought a car and started mixing it up on the highways with our fellow Israeli’s.

You don’t have to make the same mistake. Ianglo can help you to find and pay for a car utilizing conventional and new progressive financing programs that are very affordable, and of course real American style leasing.  Please visit our customer page and see for yourself, you’ll be glad you did.