Leasing a car for business

Are you often on the road for your company, for example to visit customers? Then a good and representative car cannot be missing. After all, this is your business card. You can choose to purchase a car, but leasing is also an option. This way you don't have to dig deep into your pocket and you have money left over for other investments. We explain below how the fork is in the handle.

What is business leasing?

The lease company finances your company car when you conclude a lease contract. There are different types of lease, one of which is a financial lease . You can compare a financial lease with taking out a mortgage: you pay a monthly amount with interest and when you have repaid the amount, the house is yours. The house serves as collateral for a mortgage and with a financial lease that is the car. That is the biggest advantage of a financial lease, because you no longer have to return the car to the lease company after the contract. When the lease contract is concluded, you are immediately the economic owner of the car, and after the contract you are also the legal owner of the car.

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The many benefits

As an entrepreneur, it is attractive to opt for leasing a company car, especially a financial lease. And that is not without reason, because thanks to a financial lease you can benefit from various tax and financial benefits.

Spread the purchase amount

A comfortable and tidy car is a must when visiting customers. Unfortunately, you have to put down quite a bit of money for a new car. Fortunately, financial lease has the ultimate solution for this. With a lease contract you spread the amount per month that you have to pay for the car. After you have concluded the contract, you can drive away in your brand new car within a few hours, because you are the owner immediately in the economic field. Useful!

No kilometer limit

With operational lease and private lease you often have to deal with a kilometer limit. This means that you are bound to a maximum number of kilometers that you can drive for private purposes. If you are over this limit you have to pay extra for this. This is not the case with a financial lease, because you are the economic owner of the company car. So you can know for yourself where you are going by car. So say hello to a holiday to the South of France!

Tax benefits

A big plus of a financial lease is that as an entrepreneur you have to deal with tax benefits. We list the benefits for you below.

  • Interest deduction: A financial lease contract is seen as a business loan. With a business loan, you can deduct the interest from the profit.
  • Investment deduction: As an entrepreneur, you can often use the investment deduction. You can deduct the investment deduction from the profit, so that you pay less tax. 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 environmental investment deduction, for example, if you are going to lease a fully electric car.
  • VAT: With the tax return you can reclaim the VAT, so that you no longer have to pay the VAT every month.
  • Depreciation: Because a business lease car is seen as a business asset, you can put the car on the balance sheet, which means that you can deduct twenty percent of the purchase value each year. You will have less profit left, which means you will pay less tax.

Financial lease a business car at 123Lease

Leasing a car on the basis of a financial lease has added value for your company. At 123Lease you can choose from countless cars so that you can leave for work with a good feeling. Call 038 20 22 660 or send an email to Edwin at edwin@123lease.nl and you will be driving away in your new company car within four hours!

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