He vehicle leasing It is a great option to consider if you need purchase a vehicle for your company's fleet. A leasing contract involves great tax advantages What you should take into account when deciding on this financing option.
If you want to discover more about vehicle leasing, keep reading.
What is car leasing
Habitually The concepts of vehicle renting and leasing are often confused and that's why it's important Clarify these concepts before starting.
When we make a renting contract to purchase a vehicle, once the contract has ended we will only have the possibility of return the vehicle or extend the contract. Under the conditions of a rental contract There are no further options for action.
On the contrary, With a leasing contract there is the possibility of purchasing the vehicle at the end of the contract, enjoying a great discount, since It can be negotiated for the difference based on the installments that have been paid during the duration of the contract.
Another of the great differences between leasing and renting is the duration of the contract. With the vehicle leasing The contract usually has a duration of 2 years Besides that there is no possibility of canceling it. On the other hand, The renting has a duration of between 1 and 5 years and there is the possibility of revoking the contract.
Besides, leasing is a type of contract in which you pay an entrance fee and a fixed fee for a certain period of time, assuming all the expenses derived from the use of the vehicle (registration, fuel, breakdowns...) On the other hand, the renting assumes the costs derived from breakdowns as long as they have not occurred due to misuse.
Car leasing is a very beneficial rent-to-own option for small business owners and the self-employed. In tax matters, you can enjoy multiple advantages since you do notor it counts as an asset of the company since legally the vehicle belongs to the bank.
How vehicle leasing works
Advantages of vehicle leasing
- Very low monthly payments
- Contract opening cost 0 or very low
- Includes vehicle maintenance costs.
- Possibility of purchasing a high-end car for a lower price
- Fiscal benefits for companies by not counting as property
- Possibility of renewing the vehicle every few years
- You only pay one car depreciation cost during the time the contract is active
Disadvantages of car leasing
- In some car leasing contracts there may be mileage limitations
- Vehicle insurance can be more expensive because it is a leasing vehicle
- Usually there is no possibility of canceling the contract before its end, but in the event that there is a cancellation fee, it is usually quite high.
- They can there may be extra charges at the end of the contract How could it be excess wear or excess mileage?
- The first years of use of a vehicle are when its value depreciates the most, so it must be taken into account that A fixed fee is being paid for a value that is depreciating.
Vehicle leasing with Alter Finance
At Alter Finance, we offer the possibility of making a leasing contract of vehicles for your company if you need it. Having a leasing contract to purchase a vehicle has very positive advantages for you, since You will forget about many added costs that usually involve owning a vehicle and enjoying numerous tax advantages.
If you need information about vehicle leasing, or would like to arrange a meeting with us to Get financial advice and decide which option is best for you, Do not doubt contact us. We will be happy to assist you.