What is the difference between Financial Lease and Operational Lease?

Financial Lease vs Operational Lease.

Which one suits you?

At Lease.car, we understand that choosing between financial lease and operational lease is an important decision. Both options have their own advantages and differences, and it is essential to understand which one best suits your specific needs. Let's take a look at the difference between financial lease and operational lease:

Financial lease: Your car, your property

Financial lease offers the option of financing a car and becoming its economic owner. Here are some key features:

Ownership

With financial lease you are the direct economic owner of the car, which means that it will appear on your company balance sheet.

Depreciation

You are responsible for the depreciation of the car.

Maintenance and insurance

The maintenance and insurance of the car are your responsibility.

Influence on balance sheet

The car affects your financial balance sheet and asset position.

Flexibility

You can customise the car to suit your needs and requirements.

Operational lease: Hassle-free driving, no ownership

Operational lease offers the option of renting a car for a fixed monthly fee. Here are some key features:

No ownership

You don't become an owner of the car; it remains the property of the leasing company.

Includes maintenance and insurance

Maintenance, insurance and often other services are included in the monthly lease fee.

No worries about depreciation

You do not suffer from depreciation of the car.

No balance sheet impact

The car is not on your company balance sheet, which can have tax advantages.

Fixed monthly amount

You know exactly what you will pay each month, with no unexpected costs.

Flexible lease terms

You can adjust the lease term and mileage to suit your needs.

What is more advantageous, operational lease or financial lease?

It depends on your specific situation and needs. Operational lease usually has a fixed monthly amount and includes maintenance, insurance and other services, making it easier to budget. Financial lease allows you to take ownership of the car and can offer tax advantages, but usually requires a larger initial investment and you bear the cost of maintenance and insurance yourself. It is important to compare both options and assess which one suits you best based on your financial situation and needs.

How to choose?

Choosing between financial lease and operational lease depends on your personal and business situation. Consider the following questions:

• Do you want to take ownership of the car?

• Do you prefer a fixed monthly fee without worries about maintenance and insurance?

• What tax aspects are important to you?

With Lease.car, we are happy to help you make the right choice. Our expert advisers are available to discuss your specific needs and offer a tailored leasing solution. Contact us today and find out which leasing option suits you best. At Lease.car, you'll be behind the wheel yourself!