Driving on a financial lease in Morocco
In Morocco, car leasing takes the form of a finance lease or lease with purchase option offered by Wafabail, Maghrebail or Maroc Leasing, and of long-term rental, with the company owning the vehicle until any buyout.
Financing first favoured by companies
In Morocco, vehicle leasing grew among companies and liberal professions, which see it as a way to preserve cash. Lease payments count as an operating expense, which explains why so many company fleets in Casablanca are leased.
Licensed leasing companies
Wafabail, Maghrebail, Maroc Leasing, BMCI Leasing and Crédit du Maroc Leasing et Factoring are finance companies supervised by Bank Al-Maghrib. They belong to the Professional Association of Finance Companies, which represents the sector.
Lease with purchase option for individuals
A lease with purchase option lets an employee drive a new car for a monthly rent. At the end, they can buy the vehicle by paying the residual value, hand it back or swap it, depending on the signed contract.
Long-term rental with services
Long-term rental, offered for example by Wafa LLD, often includes maintenance, assistance and claims handling. The client never becomes the owner, and an annual mileage is set in the contract, with extra kilometres billed when the vehicle is returned.
Car Ijara at participative banks
Participative banks offer Ijara Muntahia Bittamlik, a lease that ends with a transfer of ownership. Rent replaces interest, and the contract must follow the opinions of the Sharia committee of the Higher Council of Ulema, like other Moroccan participative products.
Comparing with a standard car loan
With a loan, the buyer owns the car from the outset and the vehicle carries a lien. The guide to the car loan in Morocco details this arrangement, often simpler for an individual who keeps a car for a long time.
Higher first payment and residual value
The contract often includes a higher first rent, similar to a deposit, and a residual buyout value. A large first payment lowers the monthly rent, but it is lost if the vehicle is handed back at the end of the contract.
Taxis, vans and commercial vehicles
Leasing also finances vans, refrigerated trucks and tourist transport vehicles in Marrakech and Agadir. Young companies can combine leasing with a public guarantee, as explained on the page about the business loan in Morocco.
Insurance and claims under a lease
The leasing company requires comprehensive insurance and remains the beneficiary of the payout in the event of theft or destruction. If the payout does not cover the remaining rents, the lessee may have to pay the difference.
Registration document and lessee liability
The registration document is in the leasing company's name, but the lessee is liable for fines, speed camera offences and the annual tax depending on the contract. Check who pays each charge before signing.
Early termination and penalties
Ending a lease early usually means paying compensation close to the remaining rents. A move to another city or a change in work situation should therefore be anticipated before choosing a four or five-year term.
Leasing in neighbouring Tunisia
Tunisia has a highly developed leasing market, with several specialist companies listed on the Tunis Stock Exchange and common use among individuals. Our guide to car leasing in Tunisia lets you compare practices in the two Maghreb countries.
Setting up a car lease in Morocco
- Choose between lease with purchase option, long-term rental or finance lease based on use, annual mileage and wish to own.
- Request quotes from several leasing companies, comparing first rent, monthly payment and residual value.
- Submit the personal or company solvency file and let the company consult the credit bureau.
- Sign the contract, take out the required comprehensive insurance and collect the vehicle from the dealer.
- At the end of the contract, exercise the purchase option or return the car after a joint inspection.
Expense items of a Moroccan car lease
| Item | Benchmark | Depends on |
|---|---|---|
| Higher first rent | Often 10 to 30% of the price, indicative | Negotiation and term |
| Monthly rent | Fixed for the whole term | Vehicle price, term, residual value |
| Residual value | Set in the lease with purchase option | Term and model |
| Comprehensive insurance | Compulsory during the contract | Vehicle, city, driver |
| Excess mileage charges | Billed at the end of long-term rental | Gap with the annual allowance |
Papers for a leasing application in Morocco
- CNIE and driving licence
- Payslips, or balance sheets for a company
- Trade register, ICE and tax identifier for a company
- Recent bank statements
- Dealer's quote
Frequent bad surprises with car leasing
- Returning the vehicle with undeclared damage, which is then billed at a high price during the final inspection.
- Going well over the annual mileage allowance, which becomes expensive when the long-term rental contract ends.
- Forgetting that early termination usually means paying almost all remaining rents, even after a job transfer to another city.
- Handing a deposit to a so-called leasing company on social media that is not licensed by Bank Al-Maghrib.
Lenders to contact
- Banque Populaire (Groupe BCP): Moroccan commercial bank offering individuals consumer credit products, including the Moujoud loan and personal car financing options for retail customers.
- BMCI: Moroccan commercial retail bank active in providing financing solutions to individuals and businesses across the Moroccan market.
- Bank Assafa: Moroccan participative bank offering Sharia-compliant accounts and financing, including home Murabaha for individuals wishing to purchase residential property.
What to know about car leasing in Morocco
Can an individual lease a car in Morocco?
Yes, lease with purchase option and long-term rental are open to employees and retirees with regular income. Income and age conditions resemble those of a car loan, with the finance company analysing the debt ratio.
Is leasing more expensive than a car loan?
The total cost depends on the first rent, the residual value and the services included. Long-term rental with maintenance can be competitive for high-mileage drivers, while a standard loan is often cheaper for keeping a car for many years.
Who pays the annual tax on a leased vehicle?
The legal owner is the leasing company, but the contract usually passes this cost on to the lessee, either directly or by recharging it. Read the relevant clause to avoid an unexpected bill.
Is Ijara available for a used car?
Some participative banks finance recent used vehicles sold by professionals, but the offer remains mainly focused on new cars. Conditions vary depending on the institution and the age of the vehicle.