In financial leasing the lessor remains the owner of the vehicle, equipment or property, while you get to use it, bear all the risks and pay a down payment and leasing instalments. Once you pay the last instalment, you have the right to buy the item at the price and on the terms in the contract, and if you do not use it, you return the item undamaged. Only leasing companies licensed by the Central Bank and banks the Central Bank has approved may offer leasing, and the Central Bank's list currently shows one leasing company. If you fall behind with instalments and do not pay within the grace period either, the lessor can terminate the contract and demand the item back, and the court decides on this within three days. Leasing of movable items is entered in the Pledge Register within three working days, so a buyer of a used car can check whether the vehicle is on lease.
This guide explains what financial leasing is, who may offer it, what the contract must contain, what your obligations are during the lease, what happens when you do not pay and what to watch out for when buying a car that was leased.
What is financial leasing?
- The lessor keeps ownership, and for the agreed period transfers to you possession, the right of use and all the risks and benefits of an owner.
- You pay a down payment before the handover and the leasing fee in agreed instalments after it.
- The leased item can be a vehicle, equipment, plant, property or software, but not money or securities.
- After the last instalment you may buy the item at the contract price, and if you do not want to buy it, you tell the lessor at least 30 days before the contract ends and return the item undamaged, apart from normal wear.
- A leasing company may also offer operating leasing, in which you use the item with no option to buy it.
Who may offer leasing?
- Financial leasing may be provided by leasing companies licensed by the Central Bank, banks the Central Bank has approved for this business and companies allowed to do so by a separate law.
- Only a company licensed by the Central Bank may use the word "leasing" in its name.
- On 28 September 2026 the Central Bank's list of leasing companies contained one company, Porsche Leasing DOO Podgorica.
- Leasing companies report your obligations to the Central Bank's Credit Registry, so a lease appears in your credit report.
What must the contract contain?
- The contract is made in writing and contains details of the lessor and the lessee and your statement that you chose the item and the seller yourself.
- The contract contains a precise description of the item, the term, the purchase value, the down payment, the leasing fee and the number of instalments.
- It sets the instalment due dates, the grace period for payment, the date and place of handover and the price at which you may buy the item.
- If you are a consumer, the contract must also contain the information required by the consumer credit law, and that law applies to leasing when the contract includes an obligation to buy or when the lessor decides on the purchase unilaterally.
- Inspect the item before signing the handover record, because if you do not report visible defects then, you are deemed to have accepted it without them.
What are your obligations during the lease?
- You keep the item in good condition and pay for repairs, but you are not liable for normal wear.
- The risk of accidental loss or damage passes to you on the day you sign the handover record, unless the contract says otherwise.
- If the contract or the law requires insurance, you pay for it, and the lessor is the beneficiary of the policy unless the contract says otherwise.
- You are liable for damage caused by the vehicle, even when someone else drives it, and for traffic offences you are treated as the vehicle's owner.
- Without the lessor's consent you may not pledge the item or let someone else use it.
- The seller is liable for physical defects of the item unless the contract says otherwise, while the lessor is liable for legal defects and the contract cannot exclude that liability.
What happens if you do not pay the instalments?
- If you are late with the down payment or an instalment and do not pay within the grace period in the contract either, the lessor can terminate the contract, unless the contract provides otherwise.
- The lessor then sends you a written notice of the obligation to return the item, which has the force of an enforceable document.
- If you do not return the item voluntarily, the court decides on the request for return within three days, and you return the item within three days of the final decision.
- After selling the returned item, the lessor pays you any amount left after settling its claim within eight days, and if it pays late, it owes you statutory default interest.
- In addition, you must compensate the lessor's loss so that it is put in the position it would have been in had you paid on time.
- If the lessor abuses its right to have the item returned, you can claim damages, including for the lost right to buy.
What to watch out for when buying a car that was leased?
- While the lease runs, the lessor owns the vehicle, so the lessee cannot sell the car on their own.
- The lessor enters a lease of movable items in the Pledge Register within three working days of signing the contract, and a lease of property is entered in the land register.
- Before buying, check in the Pledge Register whether the vehicle is still registered as leased and ask for proof that the buyout has been completed.
- If the lessor goes bankrupt, the lessee keeps all rights under the contract, including the right to buy.
Interest and terms for cash loans are explained in our guide to consumer loans, and how to see your own debts in our guide to the credit registry. Checks before buying a vehicle are covered in our guide to buying a used car, compulsory cover in our guide to car insurance, and calculating interest on late payment in our guide to default interest.
Frequently asked questions
Who owns a leased car? The lessor, until you pay the last instalment and use your right to buy it at the contract price.
How does leasing differ from a loan? With a loan you become the owner straight away, while with financial leasing the lessor remains the owner and you use the item, pay instalments and bear the risks.
Who may offer leasing in Montenegro? Leasing companies licensed by the Central Bank, banks the Central Bank has approved and companies allowed to do so by a separate law.
Who pays insurance and traffic fines? You pay for insurance if the contract or the law requires it, and for traffic offences you are treated as the vehicle's owner.
What happens if I do not pay the instalments? After the grace period the lessor can terminate the contract and demand the vehicle back, and the court decides on this within three days.
How can I check whether a used car is on lease? Check the Pledge Register, where leases of movable items are entered within three working days, and ask for proof that the buyout has been completed.
Sources
The concept, the contract, the parties' rights and obligations, termination, return, registration of leases and the conditions for lessors are set by the Act on Financial Leasing, Factoring, Purchase of Receivables, Microcredit and Credit Guarantee Business (Official Gazette 73/2017 and 44/2020, Articles 5 to 44), and its application to consumers by the Consumer Credit Act (Official Gazette 15/2025, Article 8). The list of leasing companies is published by the Central Bank of Montenegro. The information was checked on 28 September 2026. Fijaka is a classifieds platform; this text is not legal advice.