What is the definition of car leasing?

Car leasing is a financing structure in which you use a vehicle for a fixed monthly payment, without paying the full purchase price upfront. Instead of buying the car, you enter into a lease agreement for a predetermined period and mileage.

There are different types of lease structures, each with its own characteristics:

• Operational Lease: You pay a fixed monthly amount that usually includes costs such as maintenance, insurance and road tax. The leasing company remains the owner of the vehicle.

• Financial Lease: You finance the vehicle in business installments and become the economic owner. The vehicle appears on your company’s balance sheet.

• Private Lease: Comparable to operational lease, but intended for private individuals instead of businesses.

With leasing, you know exactly where you stand. You pay a fixed monthly amount throughout the term of the contract. This provides clarity, predictability and preservation of working capital — particularly attractive for entrepreneurs and self-employed professionals.

Would you like to know which lease structure best suits your situation?

Contact one of our advisors today and request free, no-obligation advice.