Financial lease of your company car? Often a good idea!
More and more entrepreneurs are opting for business leasing of a company car. Financial leasing is popular. Why? We would like to explain this here.
The special thing about financial leasing is that you are the direct owner of the car. This means that you benefit from many tax benefits because the car is on the balance sheet. Moreover, you do not have to pay the purchase price of the company car immediately, so this money is largely freed up to invest in your company. Every month you pay a certain amount for repayment and interest. As the owner of the company car, you decide how it is equipped and how you decorate and sticker it. You also decide where you have your company car serviced and you can use the car abroad without any problems.
Even if your company has sufficient funds to purchase the company car itself, it may still be wise to opt for a financial lease. It is usually a simple calculation, what the money can yield if you put it into the development of your business.
Take advantage of tax benefits
Do not confuse financial lease with operational lease. With operational leasing, you do not become the owner of the company car and you have to return it after the (often shorter) lease period. You will then not benefit from the many tax benefits, such as the deduction of VAT, interest and the investment deduction. Financial lease can be seen as an investment instead of a cost item. Contracts with a term of up to 5 years are possible.
Also ideal for start-up companies
Starting entrepreneurs in particular are often better off investing their initial capital in their company than in a company car. If they need a company car, financial leasing is a smart choice. As a starting entrepreneur, you immediately drive a new company car. You only need to be registered with the Chamber of Commerce.
Used company car with financial lease?
You can also finance a used company car with a financial lease. With all the advantages mentioned earlier, plus the advantage of a lower purchase value, translated into lower monthly costs. After all, the first high depreciation of the company car has already been taken care of.
Financial lease with BKR registration?
Many entrepreneurs think that financial leasing of a company car with a BKR registration is not possible. That is not always true. Of course, your financial situation is taken into account and whether it is sufficient to meet the monthly obligations. But a BKR registration is not necessarily an obstacle to this. We mainly look at the person and not just at 'the rules'.
Is there a tax addition for company cars?
Do you also use the company car financed via financial lease for private purposes? If you drive more than 500 private kilometers per year, the tax authorities will see this as wages in kind and you will receive a tax addition. The percentage for a petrol and diesel car is currently 22% over the purchase price. It is advantageous that this purchase price is lower because no BPM is charged. You also pay a lower rate of motor vehicle tax for a company car with a gray license plate.
Knowing more?
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Benefits of financial lease summarized
- Driving a new company car
- No major investment required
- Duration of up to 5 years possible
- You are the direct owner of the company car
- Attractive tax benefits
- Freedom in implementation, maintenance and design
