Difference between operational, private and financial lease
Differences and benefits explained per lease form
There are major differences between operational, private and financial lease. With financial leasing you are the direct economic owner of the vehicle. Financial leasing therefore resembles purchasing or paying off. This is not the case with other forms of leasing. With both operational lease and private lease, you do not directly own a vehicle, but you actually rent this vehicle for a longer period.
What is the difference?
With operational lease (only for companies) and private lease (only for private individuals), you pay a fixed monthly amount for the use of a predominantly new vehicle. The only additional costs are those for fuel, car wash, parking and any fines. With these types of leasing, there is also a maximum number of kilometers per year that you can drive. If you exceed that, the amount of the monthly installment will increase.
With financial leasing , which is mainly used by companies, you are the direct economic owner of the vehicle. The monthly amount to be paid consists of principal and interest. The costs for maintenance and use are therefore not included. You can usually simply trade in your old vehicle, make a down payment if necessary and agree on a final term. The term of the lease contract can be agreed upon in consultation. It doesn't matter how much you drive. Check out the chart below for an overview of the differences.
| Financial Lease | Operational Lease | Private Lease | |
|---|---|---|---|
| Direct economic owner | Yes | No | No |
| Owner at end of term | Yes | No | No |
| Monthly amount | Consists mainly of repayment and interest | Is purely for car use | Is purely for car use |
| Kilometers per year | Unlimited | Limited | Limited |
| Additional costs | Insurance, motor vehicle tax, maintenance and all usage costs | All usage costs such as fuel, car wash, parking and fines | All usage costs such as fuel, car wash, parking and fines |
| Trade-in possible | Yes | No | No |
| Cancel contract prematurely | Accelerated repayment possible in many cases | Almost never without high costs (purchase payment) | Almost never without high costs (purchase payment) |
| Maintenance | To be carried out at your own discretion | Included in lease price | Included in lease price |
| Interest deductible | Only for companies | N/A | N/A |
| VAT to be reclaimed | Only from purchase amount | Only monthly amount | N/A |
| Investment deduction | Commercial vehicles only | No | No |
| Depreciation in accounting | Yes | No | No |