Under normal circumstances, the down payment is used to buy and sell legal relationship or installment credit, and at present it is to obtain the ownership of the subject matter. However, in the legal relationship of financial leasing, the down payment paid by the lessee is not the case. At present, the concept of down payment is widely used in the industry to define the down payment paid by the lessee, but there is no formal definition. So how to define the down payment of financial leasing in legal relationship?

What is a down payment?

In fact, in order to avoid the defects in the ownership of financial leasing companies, the definition of down payment is more accurate. Refers to the 1 rent paid by the lessee to the lessor. The first rent shall be paid in advance before the lease start date as the deposit for the lessor to purchase the leased property. The financial leasing company may charge the lessee the first rent and then pay 100% of the equipment price to the seller. Or authorize payment to the lessee and then pay the down payment to the seller. When the lessee pays the down payment, the seller has fulfilled the obligation to pay the down payment for the financial leasing company.

How to characterize?

The nature of the down payment is clearly stipulated in the financial lease contract, which mainly includes two situations. 1 as an advance payment can offset the rent owed by the lessee, that is, the down payment is included in the installment rent as the rent expected to be paid to the lessor. If the lessee fails to pay the rent as agreed in the contract, the lessor may directly deduct the rent owed from the down payment. The second is the money paid to the lessor independently of the installment rent. At this time, the total rent consists of down payment plus installment rent. The down payment is paid by installments. 1 The down payment is not the down payment.

abstract

Therefore, in order to understand how the down payment of financial leasing is qualitative in the legal relationship, it needs to be divided into various situations, because the meaning of down payment is different in different situations. I hope this article can give you some help.