Leasing for businesses

Financial leasing is a type of leasing during which the customer covers the entire value of the car with monthly payments, after which it becomes the owner of the car. During the leasing period, the customer fully covers the value of the car, as well as pays the calculated interest. Upon making the last monthly payment, the customer has paid for the leasing service to Citadele Leasing. The leasing company makes an electronic mark in the e-system of the Road Traffic Safety Directorate with regard to the transfer of ownership from the leasing company to the holder or customer. After making the mark, the customer is obliged to take possession of the car within 5 days, replacing the car’s technical passport.

Operational leasing is a long-term rent. During the leasing period, the customer pays the lease, which is formed as the difference between the purchase value of the car and the determined residual value. During the term of the agreement, the customer pays only a part of the price of the car, paying its depreciation or amortization value. In case of operational leasing, the car does not automatically become the property of the customer after the end of the leasing period. At the end of the agreement period, the customer can buy out the car for its residual value, transfer the buy-out right to a third party or return it to the seller (dealer).

Car leasing is a loan for the purchase of a car with the vehicle as collateral. When you purchase a car using leasing, the leasing company becomes the owner, and the buyer is registered as the car’s user. Only after all leasing obligations have been fulfilled will the car’s ownership rights be re-registered from the leasing company to the customer.

In turn, a car loan is a loan for the purchase of a car which becomes the property of the purchaser as soon as the purchase has been made. In most cases, interest is higher for car loans than for leasing, and most car loans have purchase price limit.

A car purchased with a lease can leave the Republic of Latvia.
To drive into the territory of any EU country (including the Baltics), you do not need an authorisation document from the leasing company.
You need authorisation to drive into CIS countries.
The fee for issuing a power of attorney is in the Price List. The document is free for those whose CASCO provider is CL Insurance Broker.

Terms for receiving the power pf attorney:

You must submit a valid CASCO policy which includes the countries whose borders you plan on crossing. If these countries are not included in your CASCO coverage, you must take out an additional CASCO policy to include the necessary countries for the relevant period of time. 

• If your technical passport includes our old name — SIA “Unicredit Leasing” or SIA “Citadele līzings un faktorings” — then this must be changed to our current name. We will cover the CSDD costs for changing your technical passport. This applies only to CIS countries. You do not need to change the passport for driving to EU countries.
• You may not have any missed leasing payments. 
• You must submit a completed and signed Application form (LV).

Send the form and attachments to lizings@citadele.lv, and the document will be prepared within two business days. 

WARNING!
Bearing in mind the unstable situation in Ukraine and the possible threats of warfare, we will not be issuing power of attorney for driving to Russia, Belarus or Ukraine, even if these countries are included in your insurance coverage. Applies indefinitely.

To change the license plate of a leased car, you do not need any documents or permission from the leasing company. To change the license plate, you must contact CSDD. Once the plates have been changed, please notify your CASCO and OCTA companies as well as your leasing company. You can send this information to lizings@citadele.lv.

The object of leasing must be insured with CASCO insurance for the entire period of the lease, the beneficiary must be Citadele Leasing. The client must provide a copy of the valid CASCO insurance, if CASCO has not been concluded through Citadele Leasing.

If you don't have a CASKO policy yet, contact CL Insurance Broker!

Citadele Leasing finances purchase of cars, motor vehicles, commercial vehicles, various types of machinery and equipment. The leasing object can be new or second hand.

If a road traffic accident occurs, you must: 

1. notify the State Police or fill in a Mutual Report*,
2. fill an incident report with your insurance company without delay,
3. the insurance company will evaluate any damage to your car, determine the amount of losses incurred, confirm a repair quote or pay out compensation.

* A Mutual Report can be filed if just two vehicles are involved in the accident, if the drivers of both vehicles can agree on the circumstances of the accident, if no person has been injured, if no damage has occurred to a third person’s property, and if no damage was done to the vehicles which would make them unable or illegal to drive.

Yes, you can make a payment covering part of the principal amount of the lease, thus reducing your monthly payment amount going forward. To do this, you must fill in an Application for an Additional Invoice (LV) (in Latvian), sign it, and send it to lizings@citadele.lv. After receiving this, Citadele Leasing will issue an additional invoice for the amount stated in your application, and will prepare a new payment schedule and send it to you.

Citadele’s confirmed insurance companies for leasing are:

• AAS Balta
• AAS BTA Baltic Insurance Company
• AAS Baltijas Apdrošināšanas Nams
• Balcia Insurance SE
• ERGO Insurance SE, Latvian branch
• IF P&C Insurance AS, Latvian branch
• ADB Gjensidige, Latvian branch
• Compensa Vienna Insurance Group ADB, Latvian branch
• or any other company, individually  confirmed with SIA “Citadele Factoring” or SIA “Citadele Leasing”.

Initial costs that you have to take into account when concluding a leasing transaction: down payment or participation, commission fee for drawing up transaction documents, car appraisal (if a used car is purchased), car registration with the Road Traffic Safety Directorate, CASCO and OCTA insurance. In the following period, - monthly leasing payments, insurance, fuel and car maintenance costs.