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.

Table of contents

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