You would like to lease a company car. In this case, you have the choice between operational leasing and financial leasing. Please note, these two formulas are only intended for companies, self-employed people or professionals, never for individuals. A comparison.
Financial leasing
With financial leasing, you rent the car for a specific period from the leasing company. The contract does not include operational monitoring – think about insurance, maintenance, possible repairs and tires. So you will have to take care of it. At the end of the contract, a purchase option is provided: it gives you the right (but not the obligation) to repurchase the car at a given residual value. So, during the duration of the contract, you are not the owner of the car, you only become one when the residual value is paid. In this case, you will have to register the car again and pay a new registration tax.
Note also that financial leasing is not limited to car financing. In fact, the financial leasing contract is defined as a rental contract for movable or immovable property concluded between a bank and its client and which is accompanied at the end of the monthly repayments by a purchase option, which However, this is not obligatory. We think, for example, of an SME which used financial leasing to ensure the financing of its computers, its printer, etc.
Operational leasing
In the case of operational leasing, you benefit, alongside the rental of the car, from a whole series of additional services: interest, taxes, maintenance costs, possible repairs, insurance, depreciation, etc. The leasing company therefore assumes all management and administration of the car. It is no longer necessary to keep garage invoices and gas station tickets, making it easier to deduct automobile costs from tax.
Operational leasing is therefore an “all-in” formula: fuel, technical assistance and a replacement car are often included in the contract. Unpleasant surprises, such as unexpected repairs, are in principle excluded: you know in advance the exact periodic amounts to be paid. In short: risk and cost control is central.
In terms of operational leasing, you receive an invoice each month which lists all the services included in your leasing. You do not own the car and you cannot become one. At the end of the contract, you must change cars.
