Leasing a car for business

As an entrepreneur, are you often on the road, for example to visit customers? Then a good, representative car is an indispensable business card for you. As a self-employed person or entrepreneur, would you like to purchase a new car, but do not want to invest the purchase amount in one go? Then (business) leasing may be a better option for you. By opting for a lease car, you can spread the purchase amount over a longer period. This way you keep the money within your company. You can also make use of various attractive tax schemes and discounts. Below we explain how it works.

What is business leasing?

Do you opt for business leasing? Then a leasing company will finance your company car or vehicle. You can choose from different types of lease contracts, including financial lease . You can compare a financial lease with a mortgage; you pay a monthly amount with interest and when you have paid off the amount in full, the car is yours. With a mortgage, the house serves as your collateral, with a financial lease contract that is the car. That is also an important advantage of a financial lease: you do not have to return the car to the leasing company at the end of the contract. When you enter into a financial lease contract, you are the direct economic owner of the car. Has the contract expired? Then you are also the legal owner of the car.

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The benefits of business leasing

As an entrepreneur, it is very attractive to opt for leasing a company car or car, especially when you opt for a financial lease. With a finance lease contract you can benefit from many financial advantages. Below we explain the main advantages.

Spread the purchase amount

For you as an entrepreneur, a neat, representative car is a must when you visit customers. Unfortunately, a new car is quite an investment. Not every entrepreneur can or wants to afford this. Fortunately, there is a solution: financial lease. With a financial lease contract, you spread the purchase amount of the car over several months. After concluding the lease contract, you can drive away in your new car within a few hours, because you are the economic owner immediately!

No kilometer limit

Another important advantage of opting for a financial lease contract is that you are not tied to a kilometer limit. This is different with operational and private lease contracts: with such contracts you are often bound by a maximum number of kilometers that you can drive your car (for private purposes). Do you drive more kilometers? Then you have to pay extra for that. This is not the case with a finance lease contract. This is because you are the economic owner of the (company) car. So you decide where you drive your car and when. So you can go on holiday with your lease car without any problems!

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Tax benefit

Finally, the tax benefit is also an important plus of a financial lease. As an entrepreneur, you benefit from the following tax benefits:

  • Interest deduction: With a financial lease, your lease contract is seen as a business loan. As an entrepreneur, you may deduct the interest on a business loan from your profit.
  • Investment deduction: Many entrepreneurs are allowed to use the investment deduction. You can deduct this investment deduction from the profit, so that you have to 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 latter, for example, if you are going to lease a fully electric car.
  • Reclaim VAT: You can reclaim the VAT of your lease car with your tax return. As a result, your monthly payment amount will be a lot lower!
  • Depreciation: A business lease car is seen as a business asset. That is why you may put the lease car on the balance sheet and deduct 20% of the purchase value annually. This way you have less profit on the balance sheet, so you have to pay less tax.

Financial lease a business car at 123Lease

As you have read above, leasing a car based on a financial lease has many advantages for you as an entrepreneur. Leasing a car or company car also has great added value for your company. At 123Lease you can choose from countless cars and commercial vehicles and you will be helped by advisors with knowledge of and a passion for cars. This way you always get the best deal and you can set off with a good feeling for your company.

Would you also like to lease a car for business at 123Lease? Call 038 - 20 22 660 or send an e-mail to Edwin . You will be driving away in your new company car in no time!

Discover the benefits of leasing at 123Lease