But what if you want to lower your monthly payments by buying a loan? A glance at credit union opportunities with a LOA.
The point on the lease with option to purchase
Cars, real estate, smartphones, and even mattresses, rental with option to buy is spreading in many sectors and seduces more and more French. The Credit Guide announced last September that this type of credit had made a good over 35% since July 2016. Leasing, leasing, LOA, lease with option to purchase is known by several names, but is based on one principle. This is the rental of a product for a fixed period of time at the end of which the borrower may or may not proceed with the purchase of the property by paying the remaining sum (amount decided at the time of the implementation of the contract to which withdraws the monthly payments already made).
The goal is to be able to test the product for a certain period of time before buying it or enjoying a product that is always new. For example, the leasing of a car may be leased and at the end of the lease a new car rather than buying the car. Thus, we will always have in hand a new car. The long-term rental is therefore a credit during which you would be given the choice to change your mind after a certain period.
Lease with option to purchase and repurchase of credit
As we said above, the LOA is a real success, but as for a conventional credit, it can happen that we can not deal with the monthly payments. Since the contract requires a certain amount of commitment from the lessee, a credit redemption may be possible. It will obviously be necessary to study the feasibility of the project according to the terms of the lease, but ideally, the lease with option to buy can be included in a credit group. The idea will be to group all the credits that we would have subscribed (real estate, consumption, etc.) by including the leased contract. Thus, the monthly payments can be spread out over a longer period and renegotiate the rates of the other credits in order to reduce the amount of the sum paid each month.
Grant condition for a loan redemption with LOA
Be careful anyway, whether you decide to make a credit redemption for the rental period, or for rental and purchase, you can not proceed to this type of operation until one year after the signature of the lease. What’s more, in both cases, you may be subject to sales penalties. So take the time to ask for a feasibility study for your project to find out if the timing is right and if the game is worth it.