Car leasing for business

Are you a business owner often on the road, for example, visiting clients? Then a good, presentable car is an essential calling card for you. Are you a freelancer or entrepreneur looking to buy a new car, but don't want to invest the purchase price all at once? Then (business) leasing might be a better option for you. By choosing a lease car, you can spread the purchase price over a longer period. This way, you keep the money within your business. You can also take advantage of various attractive tax incentives and discounts. We'll explain how it works below.

What is business leasing?

If you choose business leasing, a leasing company will finance your company car or van. You can choose from various types of lease contracts, including financial leasing . Financial leasing is comparable to a mortgage; you pay a monthly amount with interest, and once you've paid it off in full, the car is yours. With a mortgage, your house serves as collateral; with a financial lease, it's the car. This is a key advantage of financial leasing: at the end of the contract, you don't have to return the car to the leasing company. When you enter into a financial lease, you are the immediate economic owner of the car. Once the contract ends, you are also the legal owner.

The benefits of business leasing

As an entrepreneur, leasing a company car or van is a very attractive option, especially if you choose financial leasing. With a financial lease contract, you can benefit from numerous financial advantages. Below, we explain the most important benefits.

Spread the purchase amount

As an entrepreneur, a neat and presentable car is essential when visiting customers. Unfortunately, a new car is quite an investment. Not every entrepreneur can or wants to afford it. Fortunately, there's a solution: financial leasing. With a financial lease contract, you spread the purchase price of the car over several months. You can drive away in your new car within a few hours of signing the lease, because you're the immediate economic owner!

No kilometer limit

Another key advantage of choosing a financial lease contract is that you're not tied to a mileage limit. Operational and private lease contracts are different: they often limit the number of kilometers you can drive your car (for private purposes). If you drive more kilometers, you'll have to pay extra. This isn't the case with a financial lease contract, as you are the economic owner of the (company) car. You decide where and when you drive your car. So you can go on vacation with your leased car without any problems!

Tax benefit

Finally, the tax benefits are also a significant advantage of financial leasing. As an entrepreneur, you benefit from the following tax advantages:

• Interest deduction: With a financial lease, your lease contract is considered a business loan. As an entrepreneur, you can deduct the interest on a business loan from your profit.
• Investment deduction: Many entrepreneurs are eligible for the investment deduction. This deduction can be deducted from your profit, reducing your tax liability. There are three types of investment deduction: the small-scale investment deduction, the energy investment deduction, and the environmental investment deduction. You can use the latter, for example, if you lease a fully electric car.
• Reclaim VAT: You can reclaim the VAT on your lease car when filing your tax return. This significantly reduces your monthly payment!
• Depreciation: A company lease car is considered a business asset. Therefore, you can include the lease car on your balance sheet and deduct 20% of its purchase price annually. This reduces your profit on your balance sheet, meaning you pay less tax.

Financial lease a business car at 123Lease

As you can read above, leasing a car through financial leasing offers many advantages for you as an entrepreneur. Leasing a car or commercial vehicle also offers significant added value for your business. At 123Lease, you can choose from numerous cars and commercial vehicles and receive assistance from advisors with knowledge and a passion for cars. This way, you always get the best deal and can confidently take your business to the road.

Interested in leasing a business car from 123Lease? Call 038 - 20 22 660 or email Edwin . You'll be driving away in your new company car in no time!