operating lease
What is an operating lease?
Operational lease is a lease form that is only available to business customers (companies). You pay a fixed monthly amount for your (usually new) lease car. The costs for your insurance and maintenance are included in the monthly amount, so you don't 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 much higher than for financial lease . In the case of operational lease, there is also a kilometer limit; if you drive more than this number of kilometers, your monthly installment amount will be higher.
Wondering which lease form suits you and your company best? Below we list the important differences and advantages of both lease forms for you. This way you make the best, sustainable choice for you and your company.
Operating lease versus finance lease
About finance lease
Financial lease is a lease form for business drivers where 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. When you opt for a financial lease, 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.
Leasing a used 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 kept under control with new cars that are maintained in accordance with factory specifications. That is why it is most advantageous to work with new cars with an operational lease. Would you like to lease an occasion? Then we advise you to opt for a financial lease . This is often the cheapest form of lease for entrepreneurs who want to lease a used car.
Lease rate
With an operational lease, things like your insurance and maintenance are included in the monthly amount that you have to pay. As a result, the monthly amount for operational lease is often much higher than for financial lease, which is not the case.
Tax benefit
An important difference between operational and financial leases is the difference in tax benefits with these two forms of lease. Where with an operational lease you can only reclaim the VAT on your monthly lease amount, with a financial lease you can use more tax benefits, such as:
- Deducting the interest on your loan amount for the lease car;
- Reclaim the VAT on the purchase amount;
- Making use of the investment deduction;
- Write off the lease car in your accounting.
Financial lease therefore offers you as an entrepreneur many important tax advantages. This is one of the reasons why many entrepreneurs opt for a financial lease.
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 a financial lease is the right choice for you; this is not possible with an operational lease.
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 cancel your lease agreement prematurely? For example, you may 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 lease involves high costs in the form of a lump sum payment. With a financial lease, however, it is often possible to repay faster. Read more information about terminating your financial lease contract earlier in our blog.
Important additional benefits of a financial lease
- Direct economic owner;
- More freedom with regard to use and maintenance;
- Interest and other costs are deductible for you as an entrepreneur;
- Repay early without penalty;
- Reclaim paid VAT.
Wondering if a financial lease is right for you and your company?
In view of the differences between operational and financial leases described above, a financial lease is usually the best form of lease 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 do not hesitate to contact our lease advisers . Advisors Tim and Edwin have expertise about cars and the various lease forms. They are happy to provide you with expert advice that seamlessly matches 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 mail to: info@123lease.nl
Curious about our stock of financial lease models? View our financial lease stock and calculate your financial lease rate with the financial lease calculator .
Button: View the financial lease stock
About 123Lease
Do you want to lease a car as an entrepreneur? Then 123Lease will help you on your way carefree with the car and lease solution that suits your business wishes and needs. Our team of expert advisors with a 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!