What is operational lease?
Operational lease is a form of lease that is only available to business customers (companies). You pay a fixed amount every month for your (usually new) lease car. The costs for your insurance and maintenance are included in the monthly amount, so you do not have to worry about this. You only pay the costs for fuel, parking costs and any fines. As a result, the monthly lease rate for operational lease is often a lot higher than for financial lease . With operational lease there is also a kilometer limit; If you drive more than this number of kilometers, your monthly installment will increase.
Curious which lease type suits you and your company best? Below we list the important differences and advantages of both lease types for you. This way you make the best, sustainable choice for you and your company.
Operational lease versus financial lease
About financial lease
Financial lease is a lease form for business drivers in which you immediately become the economic owner of your chosen lease car or company car. Your monthly lease rate consists of repayment and interest for the purchase price of your (company) car. The costs for the maintenance and use of your car are therefore not included in the monthly amount. If you choose financial leasing, there are many tax benefits and you will not have to deal with a kilometer limit. So you are free to drive as far as you want and you can even go on holiday with your lease car.
Operational lease is mainly aimed at new lease cars. This is because the costs of maintenance and depreciation are the largest cost item and therefore largely determine the lease amount. These costs are best controlled with new cars that are maintained in accordance with factory instructions. That is why with operational leasing it is most economical to work with new cars. Would you like to lease a used car? Then we advise you to opt for financial lease . This is often the most affordable lease form for entrepreneurs who want to lease a used car.
With operational leasing, things such as insurance and maintenance are included in the amount you have to pay monthly. As a result, the monthly amount for operational lease is often a lot higher than for financial lease, where this is not the case.
An important difference between operational and financial lease is the difference in tax benefits with these two types of lease. While with operational lease you can only reclaim VAT on your monthly lease amount, with financial lease you can take advantage of more tax benefits, such as:
- Deducting the interest on your loan amount for the lease car;
- Reclaiming the VAT on the purchase amount;
- Make use of the investment deduction;
- Write off the lease car in your accounting.
Financial leasing offers you as an entrepreneur many important tax benefits. This is one of the reasons that many entrepreneurs opt for financial leasing.
Trade-in old lease car
Would you like to trade in your old lease car and use this value for the down payment of your new car? Then financial leasing is the right choice for you; This is not possible with operational leasing.
Terminate contract prematurely
Have your wishes and needs changed so that you would like to choose a different lease car sooner and therefore want to terminate your lease agreement prematurely? For example, perhaps you need more loading space, you want a smaller car and lower monthly costs, or you want to switch to fully electric driving. If you want to cancel your lease contract earlier, operational leasing involves high costs in the form of a lump sum payment. However, with financial leasing it is often possible to repay more quickly. Read more information about terminating your financial lease contract earlier in our blog.
Important additional benefits of financial lease
- Direct economic owner;
- More freedom with regard to use and maintenance;
- Interest and other costs are deductible for you as an entrepreneur;
- Early repayment without penalty;
- Reclaim paid VAT.
Curious whether financial leasing suits you and your company?
Given the differences between operational and financial lease described above, financial lease is usually the best lease form for entrepreneurs. Are you curious whether this is also the case in your personal situation, or do you have other questions about choosing the right lease form and lease car? Please feel free to contact our leasing advisors . Advisors Tim and Edwin have expertise in cars and the various lease types. They are happy to provide you with expert advice that fits seamlessly with your situation, company, wishes and needs.
Contact advisors Tim and Edwin:
Call them on: 038 - 20 22 66 0
Send them a message via Whatsapp: 038 - 20 22 66 0
Or email to: email@example.com
Button: View the financial lease stock
As an entrepreneur, do you want to lease a car? Then 123Lease will help you get started worry-free with the car and leasing solution that suits your business wishes and needs. Our team of expert advisors with passion for and knowledge about cars will help you make the right choice that suits your wishes, needs and company. Feel free to contact them!