New car financial lease (LOA)
LOA (Lease with Purchase Option) allows driving a new vehicle by paying monthly rent, with possibility to buy at contract end. Alternative to classic auto credit, very popular in Morocco since 2020.
Key characteristics
Duration
24-60 mois
Average rate
5.5%
For whom
Individuals & pros
How it works
Leasing company (Wafasalaf, Salafin, Sofac) buys vehicle and rents to you for 24-60 months. At maturity, 3 options: buy back vehicle (residual price 15-30% of new price), return vehicle, or extend contract.
Comparison vs classic credit
Lower monthly payments than classic auto credit (20-30% less) as you only finance difference between new price and residual value. But you become owner only by exercising purchase option.
2026 taxation
Individuals: no tax advantage. Professionals: rents fully deductible from taxable result (vs limited amortization for tourism vehicle in classic credit). 20% VAT on rents but recoverable for companies.
Numeric example
New Renault Megane, price 280,000 MAD, LOA 60 months: 1st rent 56,000 MAD (20%), rents 3,200 MAD/month × 60, residual value 42,000 MAD (15%). Total cost if buyback: 56,000 + (3,200 × 60) + 42,000 = 290,000 MAD.
Advantages
- Monthly payments 20-30% lower than classic credit
- Maintenance and insurance often included (packages)
- Flexibility at maturity (buy, return, extend)
- For pros: 100% deductible rents
Disadvantages
- Not owner during contract duration
- Restrictions (max mileage, vehicle condition at return)
- Total cost often higher than credit if systematic buyback
- Penalties for early termination
Recommended providers
Wafasalaf
Salafin
Sofac
Eqdom
When to choose this product?
Ideal for professionals (tax optimization) and individuals changing vehicles every 3-4 years. Avoid for long-term drivers who would be better off buying on credit.
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