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Lease vs allowance

Making the right choice for your employees

Are you torn between leasing a company car and opting for provision of cash allowance to your employees? At Ayvens-MHC Thailand we understand that the decision can be challenging, and it all comes down to your priorities. Let's delve into the key differences between leasing and receiving a cash allowance to help you make an informed choice.

Leasing or allowance

When it comes to providing a new work vehicle to your employees you have multiple options. Let's explore the key differences between leasing and cash allowance.

  1. Initial costs

    Leasing Leasing has no upfront costs unless you wish to make a downpayment making it easier on your wallet later on.

    Allowance When your employee is buying a car, 100% of the car value must be paid upfront usually with a loan, high initial cost.

  2. Financial predictability

    Leasing Leasing offers financial predictability with fixed monthly payments, including maintenance and services, so you can budget effectively without unexpected expenses.

    Allowance Owning a car can come with unpredictible maintenance and repair costs, which may not not be included in your employee budget.

  3. Flexibility

    Leasing Leasing provides the flexibility of choosing your lease duration and mileage, aligning your contract with your driving needs and preferences.

    Allowance While the employee is free to choose any car there may be high depreciation costs, and selling is not as predictible as ending a lease.

  4. Option to upgrade to newer models

    Leasing With leasing, you have the option to upgrade to newer models more frequently, often every few years, so you will always have a new car with the latest automotive technology.

    Allowance When buying a car, upgrading to latest model with better technology and safety typically happens less frequently.

  5. Day to day ease of use

    Leasing Leasing is a one-stop shop. We manage all aspects of your car, from insurance to maintenance, providing a hassle-free experience. You do the driving and we do the rest.

    Allowance When buying your employee must coordinate various services with different providers, leading to more time spent on managing the car, further there is usually no replacement car in case of breakdown or accident.

Check out the benefits of leasing

Ready to explore the numerous benefits of leasing in more detail? Check out our comprehensive guide on the benefits of leasing to learn how leasing can enhance your driving experience.

Lease with us

No upfront cash spend / no employee borrowing required

  • Approximately 55% of the asset value financed over time
  • Competitive interest rates through us specialized funding
  • Lower purchase cost through our dealer's discounts
  • Residual value risk managed by us
  • VAT deducted by the company
  • We handle vehicle administration and servicing
  • Reduction in taxable income for employees
  • We assist your duty of care to ensure vehicle safety
  • Replacement car

Allowance

Upfront cash spend required

  • 100% of asset value financed with loan
  • High interest rates
  • High purchase cost
  • Car resale upside/downside borne by employee
  • Employee pays 7% VAT on vehicle and services
  • Employee burden to acquire, insure and service the vehicle
  • Cash allowance is employees' taxable income
  • No corporate control over vehicle technical condition
  • Usually no replacement car

Are insurance costs included? Ayvens contracts come with extensive standard insurance coverage. You are covered for third party liability, own damage, catastrophic events, roadside assistance and more.What does my monthly lease payment include? Your fixed monthly leasing price includes road tax, registration tax, financing costs, maintenance, repairs, standard insurance, roadside assistance and tyre changes.What happens if I have a breakdown? Ayvens contracts come with 24/7 roadside assistance. So whether you have a breakdown or are facing technical problems on the road, just reach out to us and we’ll have you back on the road as soon as possible.What maintenance services can I expect? With Ayvens, you’re covered for regular maintenance, technical repairs and tyres according to wear and tear. You also benefit from a replacement car after 24 hours.