Leasing

The lease provider purchases the vehicle and provides further services on request. You then pay monthly instalments in return for unlimited use of the vehicle for a fixed time period. The vehicle owner is the lease provider. At the end of the lease, you have the options of returning the vehicle or purchasing it.

What are the advantages of vehicle leasing? One of the main advantages of leasing is the financial freedom you get.

Protect your liquidity:

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  Cash flow management
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  Lease instalments are tax-deductible as business expenses

Leasing means you can have a company fleet without any negative impact on your liquidity for core business investments.

You are also able to use the vehicle to generate revenue while paying the monthly instalments.

Leasing has a positive effect on your equity ratio in the commercial balance sheet because leased vehicles are not recognised as assets. This has a positive impact on your credit rating.

Lease instalments are also fully tax-deductible as business expenses because the leased asset is recognised in the lease company’s balance sheet. Your company’s tax burden is lower as a result.

Leasing new vehicles isn’t the only option. You can also generate liquidity with a sale and lease back deal. It involves you selling your company car fleet, which forms part of your own assets, to the lease company and then leasing it back. The proceeds from the sale are then available to your company for investments in your core business.