Car leasing and leasing in general have many benefits that we will guide you through here. You need to know this about car leasing before you actually lease anything.
When you lease, you actually rent the equipment instead of buying it
Car leasing and leasing have many advantages:
1. The company does not have to invest capital
2. Better liquidity provides greater trading and competitiveness
3. The entire investment is depreciated over the lease term
4. Easier to budget because the lease is virtually the same throughout the lease term
5. Easier administration, multiple invoice collection invoice
6. Normally, the asset security is good enough, the company saves free mortgage security
7. Expenditure on the equipment during the lease period provides a tax advantage over ordinary depreciation
8. Tax neutral in most cases
There are tax advantages to leasing!
Leasing is considered the most profitable for companies that have a high marginal tax rate. On a loan, your interest deduction will be a maximum of 28%. For leasing, however, both interest and installments are deductible . This is a deduction that follows your marginal tax.
Car lease with residual value
Used primarily for passenger cars and vans which are used nicely.
– The normal contract period is 36 months
– Supplier places residual value
– After the end of the contract period, the car is returned to the supplier and you do not have to spend time selling the car
– Regular car exchange provides a reliable and modern car park, no unforeseen expenses
– The repayment of the agreement is adapted to the car’s loss of value
Car leasing without residual value
Usually used for trucks with tougher use and trucks:
1. The normal contract period is five or six years depending on usage and mileage. The car is paid in full during the period
2. The rent is expensed in full during the period
3. Your down payment can go over 60 months
4. Expense accounting provides tax advantage over activation and depreciation