All about business leasing! What do you need to know?
These days, you can lease many things. The most well-known form of this is leasing a car. Particularly popular among entrepreneurs, but private leasing is also growing explosively in the Netherlands. In this article, we focus on business leasing.What should you all pay attention to when leasing a car on a business basis? For instance, what does a full operational lease entail and what do you need to earn, for instance, to be able to lease a car? When you choose to lease a car on a business basis, you will soon be faced with the question of which type of lease you want. We’ll tell you a bit more about this.
Finance lease or operational lease?
With finance leasing, the car becomes your property. You can best compare this form of leasing to a mortgage. You pay the car back to the leasing company in instalments. When all instalments are paid off, you are the legal owner of the car. Read more about financial leasing here. Driving a lease car of your choice for a fixed amount per month? It is possible with operational lease. In general, all costs are included in a fixed monthly amount, with the exception of fuel. So you always know where you stand. The car remains the property of the lease company. This is also possible for an electric car lease business.
Tips to save money
When leasing a business car, you also have to take into account the additional taxable benefit. Do you drive more than 500 private kilometres per year in your business lease car? Then a fiscal addition applies. This is calculated by applying a certain percentage over the catalogue value of the car. The addition percentage is determined by the factors age and CO2 emissions. Make sure you are well versed in these topics before leasing a car. Do you drive less than 500 private kilometres per year? Then make sure you can prove this with a comprehensive trip registration form. That way, the additional taxable benefit will no longer apply. This can save you a lot of money so make sure you keep good records.
Do research on exactly what you will be leasing
For many entrepreneurs, leasing is a perfect solution to drive a presentable car without investing a large sum of money all at once. Despite being excited to start driving your new lease car, it is wise to go through the lease contract carefully before signing. What happens in case of early termination of the lease contract and what is included? Think for example about replacement transport, fuel card, repairs and maintenance, winter tyres, etc. But also where can you go for maintenance, repairs, etc? Always ask your leasing company about this so there is no confusion and everything is clear.
Advantages of leasing a car
When you opt for financial lease, you are entitled to tax benefits because you are the economic owner of the car. For instance, you may deduct all (car-related) VAT expenses. Interest and depreciation costs are also deductible. It is always wise to compare, especially with business leasing. Changes in the automotive market follow each other in rapid succession and many leasing companies have good deals that you can take advantage of. How to get the best lease deal? There are many companies that can help you with this.
