In recent years, more individuals and organizations in Azerbaijan have begun offering financing services for purchasing vehicles. These arrangements allow buyers to make an initial payment and repay the remaining cost over several months or years.
But which option is more cost-effective — leasing or a domestic loan?
Economist Khalid Kerimli told Trend there is no universal answer.
“It’s necessary to compare specific cases. You can’t say outright that a domestic loan is always more expensive or cheaper than leasing. Sometimes the costs may be similar. In fact, leasing is a type of domestic loan,” he explained.
Kerimli noted that compared to non-bank credit organizations, bank loans are generally the better option because banks typically have cheaper resources. Entrepreneurs who can use their own capital might also offer competitive loan terms. However, non-bank loans tend to be more expensive. In leasing versus internal credit, the deciding factors are the source of financing and overall market conditions, making case-by-case analysis essential.
Transport sector expert Aslan Asadov added that loan and leasing decisions for vehicle purchases must be fair and transparent.
“Regardless of the type of financing, the terms should be clear and acceptable to consumers — including interest rate calculations, record-keeping, and any internal or commission fees. Otherwise, customers will lose interest in purchasing vehicles,” he warned.
