A finance lease is financing for the purchase of a leased object. The leased object belongs to Citadele Leasing, but the customer is registered as the holder of the leased object. By making payments during the lease period, the customer covers the full purchase price of the leased object, as well as interest and other payments detailed in the agreement.
Once all the obligations within the agreement have been fulfilled, ownership of the leased object is transferred to the customer. Citadele Leasing adds an electronic note to the CSDD, VTUA or other relevant register. Afterwards, the customer is responsible for re-registering the object in his own name within 5 days.
An operate lease is essentially a long-term rental. The leased object belongs to Citadele Leasing, but the customer is registered as the holder of the leased object. During the rental period, the customer pays a lease payments and other payments detailed in the agreement.
After the rental period ends, the leased object does not belong to the customer. The customer must return the leased object to Citadele Leasing or its nominated buy-back agent. If the customer wishes to purchase the leased object, this can be arranged separately through Citadele Leasing at the purchase price set by Citadele Leasing.