What is cheaper as a self-employed person: buying or leasing a car?

07 juli 2021

As a self-employed person, do you need a car to visit customers? Leasing a car is very popular, especially among starting entrepreneurs and self-employed people, but you can of course also choose to buy a car. An important choice, each with its pros and cons. Below we list the options for you as a self-employed person.

Buy a car

If you choose to buy a car yourself, it is a major investment. This can be particularly disadvantageous for you as a starter, because you probably also want to save money to invest in other things. These high costs of course depend on whether you buy a new car or if it is second-hand. A new car costs on average around 35,000 euros, while a used car costs an average of 15,000 euros. Another advantage of buying a car yourself is that the car is your property. You can decide how much you drive it, what you do with it and you can possibly sell it. You can also decorate your own car entirely to your own taste.

Leasing a car

Leasing a car can be beneficial if you need a company car, but do not want to make a large investment. That is understandable; As an entrepreneur you naturally want to have money left over to grow your business. Instead of the money you would otherwise spend on a car, you can now spend this remaining money on investments in your business. Moreover, as a self-employed person you also benefit from the many tax benefits when you lease a car, especially when you opt for financial leasing . Each lease form has its own advantages and disadvantages, which we will discuss below.

Financial leasing

As a self-employed person, you have the choice of leasing a car on the basis of a financial lease contract or an operational lease contract. When you opt for financial leasing , you are immediately the economic owner of the car. This means that you are responsible for costs such as car insurance and necessary maintenance and repairs. With a financial lease you pay a monthly amount to the leasing company. In this case, the lease car is the collateral. After the lease contract has expired, you are also the legal owner of the vehicle. With financial leasing you can depreciate the car, you may be eligible for investment deduction and you may also deduct the interest. You can also reclaim the VAT.

Operational lease

When you lease a car on the basis of operational lease , you are, as it were, renting the car from the leasing company. You simply pay a monthly amount to the leasing company. The leasing company is also responsible for financial matters such as car insurance, maintenance and road tax. When the lease contract has expired, you return the car to the leasing company. Unlike financial lease, with operational lease you are only allowed to drive a limited number of kilometers privately.

What is more beneficial?

Ultimately, the total costs of a lease contract may be slightly higher than if you purchase the car new, but a lease contract prevents you from having to pay a lot of money for a car at once. So if you want to invest a lot in your company, it is wise to opt for a lease contract. This way you have money left over that you can spend on other things to promote the growth of your business. Thanks to a lease contract, you also have insight into monthly expenses.