Leasing a vehicle with a purchase option in Congo-Kinshasa

How a finance lease works

The leasing company buys the chosen vehicle and rents it to the customer for a fixed period. At the end of the contract, the lessee can buy it back for an agreed residual value, without having had to provide any additional collateral.

A limited offer in the DRC

Few Congolese institutions offer car leasing to individuals. The formula is aimed mainly at companies in Kinshasa and Katanga whose accounts are audited and which have a solid banking history with the lender.

Fleets for mining firms and subcontractors

In Kolwezi, Likasi and Lubumbashi, mining companies and their subcontractors need sturdy pick-ups and trucks. Long-term rental with maintenance included avoids tying up capital in a fleet that wears out quickly on dirt tracks.

NGOs and humanitarian organisations

In Goma, Bunia or Kalemie, NGOs and UN agencies often rent 4x4s with drivers. This market has given rise to specialist rental firms, some of which also offer long-term contracts to private companies operating in the region.

Transport operators and taxi-buses

Taxi-bus operators in Kinshasa and interprovincial transport firms seek to finance minibuses and trucks without a large down payment. The bank then examines daily takings, the operator's experience and the condition of the routes served.

Dollar lease payments and exchange rate risk

Lease payments are generally denominated in US dollars, like the price of vehicles imported through Matadi. A company invoicing its customers in Congolese francs must therefore anticipate the effect of the exchange rate on its monthly charge.

Ownership of the vehicle during the contract

The lessor keeps ownership of the vehicle until the option is exercised. The carte rose is issued in its name or records its rights, and the lessee may neither sell nor transfer the vehicle without authorisation from the leasing company.

ARCA policy and maintenance imposed on the lessee

The contract requires comprehensive insurance from an ARCA-licensed insurer and regular maintenance. Any loss not covered remains payable to the lessor, which makes taking out a good insurance policy absolutely essential for the lessee.

Leasing or a standard loan for individuals

For an employee in Kinshasa or Lubumbashi, a bank loan is generally easier to obtain than a lease, which is reserved for companies. The terms of standard financing are set out on the page about the car loan in Congo-Kinshasa.

A lever for SMEs

Leasing allows a Congolese SME to equip its business without mortgaging property, which often lacks a land title anyway. Other funding sources, such as banks, FOGEC or the FPI, are detailed in the guide to the business loan in the DRC.

Comparing with Gabon

In Gabon, car leasing is more structured and offered by specialist subsidiaries of banking groups. The guide to car leasing in Gabon shows what a more mature market can offer to companies looking to renew their vehicles.

Buying out, returning or renewing the fleet

At the end of the lease, the lessee exercises the option, returns the vehicle or renews with a new model. For mining fleets in Lualaba, regular replacement limits breakdowns and costly production stoppages on remote sites.

Setting up a vehicle lease in the DRC

1. Define your vehicle needs, the intended use, the routes and the desired length of the contract.
2. Approach the banks and rental firms offering leasing or long-term rental in Kinshasa or Lubumbashi.
3. Send financial statements, bank statements and customer contracts that support future income.
4. Negotiate lease payments, the larger first payment, residual value and included maintenance services.
5. Sign the contract, take out the required insurance and take delivery of the registered vehicle.

Charges of a car lease in the Democratic Republic of the Congo

Documents requested for a vehicle lease in the Congo

• RCCM extract, national identification and tax number
• Recent financial statements of the company
• Bank statements for the last few months
• Supplier's pro forma invoice for the vehicle
• Contracts or purchase orders justifying use of the vehicle
• Identity document of the signing manager

Frequent missteps in car leasing in the DRC

• Signing without reading the residual value clause and discovering a high buy-back price at the end of the contract.
• Under-insuring a pick-up used on mining tracks and bearing the full cost of an accident alone.
• Transferring or subletting the vehicle to a third party while the lessor still owns it.
• Invoicing in Congolese francs while paying lease instalments in dollars without allowing an exchange rate margin.
• Trusting a so-called rental firm on social media that demands a deposit before showing the vehicle.

Lenders to contact

• Rawbank: Major Congolese commercial bank allowing customers to submit an online credit application, for individuals as well as businesses and organisations.
• Advans Banque Congo: Microfinance bank of the Advans network in the Democratic Republic of Congo, financing micro, small and medium enterprises, notably in Greater Katanga.
• Rawbank: Congolese commercial bank offering banking services to individuals and professionals, with dedicated credit lines for financing micro, small and medium enterprises.
• Trust Merchant Bank (TMB): Congolese commercial bank with a presence across many provinces, active in lending to individuals, small businesses and micro-entrepreneurs.

Vehicle leasing in Congo-Kinshasa in questions