Leasing Chinese cars: is it a good deal for business?

Leasing Chinese cars is becoming an increasingly popular solution for businesses in Russia in 2025. With the growing popularity of brands such as Chery, Geely and BYD, companies are looking for affordable ways to update their fleet, and leasing offers flexible terms and tax benefits. But is it profitable for businesses, especially in an unstable economic environment? In this article, we will analyse the advantages and risks of leasing Chinese cars, contract terms and practical advice for entrepreneurs.

What's leasing and how does it work?

Leasing is a form of long-term hire with the option to purchase a vehicle, where the leasing company buys the car and the business tenant makes monthly payments. At the end of the contract, the business can buy the car at its residual value or return it. Leasing Chinese cars is particularly attractive to small and medium-sized businesses, as it avoids large initial investments.

In Russia, leasing is regulated by law, and companies such as VTB Leasing or Sberbank Leasing offer programmes with down payments from 10% and terms of up to 5 years. This makes leasing cars from China an accessible tool for optimising expenses.

Advantages of leasing Chinese cars for business

One of the main benefits of leasing Chinese cars is saving capital. Instead of spending £20,000 on buying a new Geely Atlas, a business can lease it with a down payment of £2,000 and monthly payments of around £400. This allows funds to be directed towards the company's development.

Furthermore, leasing offers tax benefits. Monthly payments can be accounted for as expenses, which reduces the taxable base. For example, a company on a simplified tax system can save up to 20% on taxes by using leasing for Chinese cars. Moreover, new models, such as the BYD Han, often come with modern technologies, which improves the image of the business.

Risks and drawbacks of leasing cars from China

Despite the perks, leasing Chinese cars does come with its risks. First off, reliability is a question mark. Older models, like the Chery Amulet, had issues with the electronics and corrosion, and even newer cars, such as the Geely Monjaro, might need frequent servicing. For instance, owners have noted suspension wear and tear after 50,000 km.

Secondly, reselling cars at the end of the lease can be tricky. Chinese cars depreciate faster than their Japanese or European counterparts. For example, the residual value of a Geely Coolray after 3 years might only be 50%, making a buyout less worthwhile.

Leasing terms for Chinese cars for business

Lease terms depend on the leasing company and the car model. Typically, the advance payment is 10–30% of the cost, and the contract term ranges from 1 to 5 years. For example, for a BYD Song Plus costing 3 million roubles with a 15% advance (450,000 roubles), the monthly payment could be around 50,000 roubles over a 3-year term.

Additionally, lessors may require Motor Third Party Liability (MTPL) and Comprehensive insurance, which increases expenses. For example, Comprehensive insurance for a Chery Tiggo 8 Pro could cost £25000 a year, which is an additional burden on the budget. Furthermore, it is important to consider mileage restrictions and the technical condition of the car at the end of the term.

Popular models for leasing

Among Chinese cars for leasing, several models stand out. The Chery Tiggo 8 Pro attracts with its spacious interior and a price of around 2.5 million roubles, making it popular for corporate use. The Geely Monjaro, priced at 2.8 million roubles, offers a modern design and all-wheel drive, which is suitable for businesses with heavy demands. The BYD Han, costing about 3.5 million, is interesting due to its electric technologies and low running costs.

Each model has its own distinct qualities. The Tiggo 8 Pro is economical but requires regular maintenance, while the Han excels in environmental friendliness but is dependent on charging infrastructure. The choice depends on the company's needs.

Tax and accounting aspects

Leasing Chinese cars offers tax benefits to businesses. Monthly payments can be included in expenses, which reduces income tax. For example, a company with an income of £10 million a year can save up to £600,000 in taxes if it uses leasing for 5 cars.

However, it's important to factor in depreciation. The residual value of the vehicle affects the final benefit. If a car loses value too quickly, buying it out may not be worthwhile. Therefore, businesses should consult with an accountant before signing the agreement.

Comparison with buying and leasing other brands

When comparing leasing Chinese cars with buying outright, the advantage is clear for businesses with limited capital. Buying a Toyota RAV4 for 3.5 million requires the full amount immediately, whereas leasing a Geely Atlas for 2 million allows payments to be spread out. However, Japanese cars, such as the Honda CR-V, offer a higher residual value, which makes buying them out more advantageous.

Compared to leasing European brands like Volkswagen, Chinese cars win on price, but lose on reputation and reliability. For example, leasing a Volkswagen Tiguan might cost £600 a month, whereas a Chery Tiggo 7 would be £400.

Infrastructure and services

The infrastructure for servicing Chinese cars in Russia is developing, but still lags behind Western brands. Leasing Chinese cars requires the presence of dealerships, such as the Chery network in Moscow or Geely in St Petersburg. In regions such as Siberia, access to spare parts may be limited, increasing downtime.

Furthermore, electric models like the BYD Han rely on a charging network, which is poorly developed in Russia. For example, charging stations are rare in smaller towns, which could make it difficult to use such cars in leasing.

The Prospects of Leasing Chinese Automobiles

By 2030, leasing of Chinese cars could take up to 25% of the commercial transport market in Russia. Already, companies like Sberbank Leasing are offering special programmes for Chery and Geely brands, indicating growing interest. Localising production, such as assembling BYD in Kaliningrad, will improve the availability of spare parts and reduce costs.

Furthermore, the growth of electric vehicles and government support for green technologies could make leasing Chinese cars even more appealing. For example, subsidies on electric vehicles may reduce the initial payment.

Is leasing a good option for small businesses?

For small businesses, leasing Chinese cars can be a smart move. Companies with a fleet of 3–5 vehicles, such as taxis or delivery services, could save up to 30% of capital by leasing a Geely Coolray or Chery Tiggo 7. Monthly payments in the range of £35,000–£45,000 allow for budget planning.

However, for businesses where resale or long-term operation are important, it's better to consider Japanese or European brands. Chinese cars depreciate in value faster, which reduces the benefit upon buyback.

Practical guidance

To get the most out of leasing Chinese cars, follow these tips:

• Go for popular models with a strong service network, such as the Chery Tiggo 8 or Geely Atlas.
• Check the terms of the agreement, including the residual value and mileage restrictions.
• Compare offers from lessors such as VTB Leasing or Sberbank Leasing.
• Factor in insurance and maintenance costs in the budget.
• Consult a tax advisor to optimise your taxes.

For example, choosing a Geely Monjaro with a 20% down payment and insurance from Rosgosstrakh can reduce overall costs by 10–15% compared to other options.

The bottom line: Is leasing worth it for businesses?

Leasing Chinese cars is a sound business tool, especially for SMEs, where saving capital and access to modern technology are important. Models such as the BYD Han or Chery Tiggo 8 offer a balance of price and functionality, and tax incentives make this choice even more appealing.

However, the risks associated with reliability and resale value require a careful approach. If the business is prepared for regular maintenance and has access to services, leasing Chinese cars in 2025 could be a sensible solution. Otherwise, it is worth considering alternative options, such as leasing Japanese brands.