Commercial leasing - all tips on company car leasing
If you are thinking about expanding the fleet for your company, or maybe buying a company car for one of your employees and all of this for commercial use, then this is an important question for entrepreneurs.
Should you buy or lease and what are the costs? It is also decisive in what amount the costs can be deducted. More and more companies are opting for leasing and there are many reasons for this. Because it has several advantages, you can find more information on commercial leasing and all tips on company car leasing here.
Who is commercial leasing an interesting option for?
Regardless of the respective industry and company size, company vehicles are an important component and have a high practical benefit. They are essential and important for sales representatives and technicians. As a commercial vehicle, they are used to transport goods and tools. And limousines are often used as prestige objects for meetings etc.
Leasing is therefore increasingly being considered for the acquisition of company cars and has already established itself very well alongside classic loan financing. In particular, leasing is very interesting for companies that do not want to burden their credit line any further. This financing model is also well suited for limited loan collateral. With commercial leasing, the customer is offered a high degree of flexibility with reduced risks. For example, a GmbH, AG, GbR, OHG, KG, as well as traders and freelancers benefit from this.
Large companies, corporations, medium-sized and also small businesses, as well as sole proprietorships can take advantage of the terms of the commercial leasing.
What are the requirements for commercial leasing?
To be accepted as a business customer for commercial leasing, companies that have been on the market for more than six months have a great advantage. Only after this period are the business evaluations relevant and it is possible for the leasing bank to assess the creditworthiness of a company. For this reason, it can be quite difficult for start-ups and start-ups.
For start-ups, everything revolves around the acquisition of new customers. In this phase, a company car can of course be very useful for a serious appearance.
Due to the small budget, many young entrepreneurs can only lease their company car. The problem for a bank, especially in the early stages of a company, is financial risk. The income is still very low during this time. The bank therefore expects certain security and vehicle leasing is subject to certain conditions.
If the leasing application is rejected, there are other ways to benefit from the advantages of commercial leasing. You can offer the leasing bank collateral in the form of a guarantor. This can be people like a family member or another private person, the only decisive factor for the bank is creditworthiness. Alternatively, the house bank with the business account can act as a guarantor. Having the commercial leasing contract secured by a surety, however, costs additional fees.
A further safeguard exists with a down payment of 20 to 30 percent of the vehicle value.
The bank may also be more likely to approve the lease if the lessor deposits a security deposit. You will receive the deposit back at the end of the term.
The advantages of commercial leasing
Legal ownership and all associated obligations remain with the lessor on leasing. This minimizes certain risks for your company. There are also many other advantages that you can benefit from when leasing.
One of the tax advantages is that the monthly installments are deductible. The same applies to special payments and other costs, the sales and value added tax are claimed as input tax.
In terms of liquidity and equity ratio, it looks like equity remains unaffected and it is not necessary to take out a loan. The costs are spread over the monthly installments.
Planning security guarantees a stable and uniform cost base for leasing rates and kilometer leasing carries a very low risk.
The lessee has the choice of current vehicle models and the lease terms between 12 and 36 months enable a constant vehicle change.
The advantages of the manufacturer's guarantee apply over the entire term and bring the customer an additional advantage.
It is also very advantageous that there are discounts for commercial customers. There are usually more favorable terms for fleet leasing, which means that the larger the fleet, the lower the rates.
In our article “Commercial leasing - all tips for company car leasing” we have now dealt with the most important points.
Just like when buying a car, vehicle leasing should also be carefully considered. It is important to know that a sudden exit from a leasing contract or changes in the amount of the installment are not so easy. For the lessee, this means that the contract must be serviced until the end of the term. Sufficiently high income or collateral is therefore necessary.
In principle, however, commercial leasing is a good and profitable financing option for many companies and the self-employed. The costs incurred can be offset against tax in full, the tax burden remains low for the lessee and the company's liquidity is spared. Large investments are therefore not necessary. In addition, short leasing terms as part of the manufacturer's guarantee save any costly repairs. In addition, you are always on the road with technically and optically cutting-edge vehicles!