What Is Financial Leasing?

With financial leasing, your business rents a vehicle (or other professional asset) from a leasing company for a fixed period. The contract focuses on financing only: operational aspects such as insurance, maintenance, repairs and tyres are not included. You remain responsible for negotiating these services, managing invoices and planning interventions yourself.

During the entire term of the contract, you are not the legal owner of the vehicle. However, a purchase option is provided at the end of the leasing period: you have the right (but not the obligation) to buy the car at a predetermined residual value. Only once this residual value is paid do you become the owner, which implies re-registering the car and paying a new registration tax.

Financial leasing is not limited to car financing. It is a rental contract for movable or immovable property concluded between a bank and its client, systematically combined with an optional purchase option at the end of the monthly repayments. For instance, a small business might use financial leasing to finance its computers, printers or other professional equipment, spreading the cost over time while preserving liquidity.

What Is Operational Leasing?

With operational leasing, you do not only rent the car: you also benefit from a comprehensive package of services. Typically, this includes interest and financing costs, taxes, maintenance and servicing, possible repairs, insurance coverage and depreciation. The leasing company takes care of the complete operational management and administration of the vehicle.

In practice, operational leasing is an “all-in” formula. Depending on the contract, fuel management, technical assistance and a replacement car in case of breakdown or accident are often included. You receive a single, predictable monthly invoice that consolidates all covered services. As a result, unpleasant surprises such as unexpected repair bills are largely avoided and you gain clear visibility on your mobility budget.

From an accounting and tax perspective, this simplicity also facilitates the deduction of car expenses, as you no longer need to collect garage invoices and fuel receipts one by one. However, it is important to note that in an operational leasing structure you are never the owner of the car, nor do you have the right to become one at the end of the contract. When the lease ends, you simply return the vehicle and switch to a new one under a new contract.