Car leasing for business

Are you often on the road as an entrepreneur, for example to visit customers? Then a good, representative car is an indispensable calling card for you. Do you want to buy a new car as a self-employed person or entrepreneur, but do not want to invest the purchase price in one go? Then (business) leasing may be a better option for you. By opting for a lease car, you can spread the purchase price over a longer period. This way you keep the money within your company. You can also make use of various attractive tax arrangements and discounts. Below we explain how it works.

What is business leasing?

Are you opting for business leasing? Then a leasing company finances your company car or van. You can choose from different types of lease contracts, including financial lease . You can compare financial lease with a mortgage; you pay a monthly amount with interest and when you have paid off the amount in full, the car is yours. With a mortgage, the house serves as your collateral, with a financial lease contract it is the car. That is also an important advantage of financial lease: after the contract ends, you do not have to return the car to the leasing company. When you enter into a financial lease contract, you are immediately the economic owner of the car. Has the contract ended? Then you are also the legal owner of the car.

The benefits of business leasing

As an entrepreneur, it is very attractive to choose to lease a company car or vehicle, especially when you choose financial lease. With a financial lease contract, you can profit from many financial advantages. Below we explain the most important advantages.

Spread the purchase amount

For you as an entrepreneur, a neat, representative car is a must when you visit customers. Unfortunately, a new car is quite an investment. Not every entrepreneur can or wants to afford this. Fortunately, there is a solution: financial lease. With a financial lease contract, you spread the purchase price of the car over several months. After concluding the lease contract, you can drive away in your new car within a few hours, because you are the economic owner immediately!

No mileage limit

Another important advantage of choosing a financial lease contract is that you are not tied to a mileage limit. This is different with operational and private lease contracts: with such contracts you are often tied to a maximum number of kilometers that you can drive (for private purposes) with your car. Do you drive more kilometers? Then you have to pay extra for that. This is not the case with a financial lease contract. This is because you are the economic owner of the (company) car. So you decide where you drive to and when with your car. So you can go on holiday with your lease car without any problems!

Tax benefit

Finally, the tax advantage is also an important plus of financial lease. As an entrepreneur, you benefit from the following tax advantages:

• Interest deduction: Your lease contract is considered a business loan in a financial lease. As an entrepreneur, you may deduct the interest on a business loan from your profit.
• Investment deduction: Many entrepreneurs are allowed to use the investment deduction. You can deduct this investment deduction from your profit, which means you pay less tax. There are three types of investment deduction: the small-scale investment deduction, the energy investment deduction and the environmental investment deduction. You can use the latter, for example, if you are going to lease a fully electric car.
• Reclaim VAT: You can reclaim the VAT on your lease car when you file your tax return. This will significantly reduce your monthly payment!
• Depreciation: A company lease car is considered a business asset. That is why you can put the lease car on the balance sheet and deduct 20% of the purchase price annually. This way you keep less profit on the balance sheet, which means you have to pay less tax.

Financial lease a business car at 123Lease

As you can read above, leasing a car based on financial lease has many advantages for you as an entrepreneur. Leasing a car or company car also has a great added value for your company. At 123Lease you can choose from countless cars and company cars and you will be helped by advisors with knowledge of and a passion for cars. This way you always get the best deal and you can go on the road for your company with a good feeling.

Also lease a car for business at 123Lease? Call 038 - 20 22 660 or send an email to Edwin . In no time you will be driving away in your new company car!