Car leasing for business

Are you an entrepreneur often on the road, for example to visit clients? Then a good, presentable car is an indispensable calling card for you. As a freelancer or entrepreneur, would you like to purchase a new car but do not want to invest the purchase amount all at once? Then (business) leasing might be a better option for you. By choosing 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 take advantage of various attractive tax schemes and discounts. Below, we explain how it works.

What is business leasing?

Are you opting for business leasing? Then a leasing company finances your company car. You can choose from various types of lease contracts, including financial lease . You can compare financial lease to a mortgage; you pay a monthly amount with interest, and once you have paid off the full amount, the car is yours. With a mortgage, the house serves as collateral; with a financial lease contract, it is the car. That is an important advantage of financial lease: at the end of the contract, you do not have to return the car to the leasing company. When entering into a financial lease contract, you immediately become the economic owner of the car. Has the contract ended? Then you are also the legal owner of the car.

The benefits of business leasing

As an entrepreneur, choosing to lease a company car is very attractive, especially when you opt for a financial lease. With a financial lease contract, you can benefit from many financial advantages. Below, we explain the most important benefits.

Spread the purchase amount

For you as an entrepreneur, a neat, presentable car is a must when visiting clients. Unfortunately, a new car is quite an investment. Not every entrepreneur can or wants to make this payment. Fortunately, there is a solution: financial lease. 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 just a few hours of signing the lease contract, because you are the immediate economic owner!

No kilometer limit

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

Tax benefit

Finally, the tax benefit is also an important plus point of financial lease. 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 may deduct the interest on a business loan from your profit.
• Investment deduction: Many entrepreneurs are eligible for the investment deduction. You can deduct this investment deduction from your profit, resulting in you paying less tax. There are three types of investment deductions: the small-scale investment deduction, the energy investment deduction, and the environmental investment deduction. You can make use of the latter, for example, if you lease a fully electric car.
• Reclaiming VAT: You can reclaim the VAT on your lease car with your tax return. This significantly reduces the amount you have to pay each month!
• Depreciation: A business lease car is considered a business asset. Therefore, you may include the lease car on the balance sheet and deduct 20% of the purchase value annually. This leaves less profit on the balance sheet, resulting in lower tax payments.

Financial lease a business car at 123Lease

As you have read above, leasing a car through a financial lease offers many advantages for you as an entrepreneur. Leasing a car or commercial vehicle also adds significant value to your business. At 123Lease, you can choose from countless cars and commercial vehicles and are assisted by advisors with knowledge of and a passion for cars. This ensures you always get the best deal and can hit the road for your business with peace of mind.

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