In the case of our western neighbor, Austria, car financing (car loans, car leasing, etc.) looks very different from ours, and we will attempt to illustrate this in the following.
Car leasing is more advantageous
In Hungary, a minimum of 20 percent of own funds for car purchases was regulated by law. It should be added that the Austrian mentality is quite different from that of the Hungarians: they do not attach much importance to who owns the car. It can be said that in Austria one in three cars is leased and they do not like the credit, which obviously does not run as an Austrian loan. Austrian car prices are high due to the very dense dealership network. For Austrians, car leasing is more advantageous than buying a car loan or buying a car because they do not focus on acquiring property, but aim to get a brand new car every 2-3 years. And this dense car selection is best made possible by car leasing as they do not have to have a large amount of equity. In contrast to us, the best way to change a car is to roll the loan portfolio before you buy a new car.
For car leasing in Austria
They will first deposit a starting amount (about € 5,000) and then use the new car of their choice. They pay the leasing monthly (about € 100-200 depending on the make and model of the car), or if they get tired of the car, they just take it back to the leasing company and bring a new car. Service is also not a problem for the lessee, as the car is free to service and repair within 10-15,000 km (due to car warranty). This makes it clear that their car leasing habits are similar to long-term rentals, but with a new car lease you can get a car cheaper than renting or getting a car loan, and keep up with the latest in car manufacturing. About twice the number of passenger cars per 1000 people in Austria than in Hungary. Let’s add that the “one car household” is very rare there, and most families have more cars (not infrequently three), which is made possible by a much higher standard of living and salaries than in Hungary (minimum wage for manual workers: EUR 818, for manual workers : $ 820).