Commercial leasing with Fleethouse Working for you

The leasing of company cars is a financing method that can only be used by commercial customers. It is also known as corporate leasing or business leasing. Instead of buying a vehicle, the lessee rents it for a fixed period of time. This is usually between 12 and 48 months. In return, the lessor receives a fixed monthly installment.

Leasing offers companies a number of advantages, especially from a financial point of view. Unlike the purchase of a company vehicle, there is no need to make a large investment all at once. Instead, fixed monthly installments provide a predictable basis for calculation and leave a buffer for other expenses. The leasing installments and the necessary insurance can also be deducted from tax as current operating expenses.

If the company car is also used privately, the employee must pay tax on the non-cash benefit. You can choose between flat-rate taxation, the so-called 1 percent rule, or keeping a logbook. In the first variant, a flat rate of one percent of the gross list price of the vehicle is added to the monthly income tax. Which option is more advantageous depends on the individual situation.

In general, a distinction can be made between two types of leasing: mileage leasing and residual value leasing. With mileage leasing, an upper limit is set for the number of kilometers that may be covered within the term of the contract. An additional payment is due for excess mileage; shortfall mileage is reimbursed. The residual value risk of the vehicle then lies with the lessor. With residual value leasing, a residual value is set which the company car must have at the end of the term. The monthly leasing rate is calculated on this basis.

Leasing is an attractive form of financing, especially for small businesses, start-ups and the self-employed. Liquidity is protected, costs can be planned and leasing guarantees more flexibility than buying a vehicle. However, small businesses and start-ups should note that proof of creditworthiness is required when concluding a leasing contract. These include a business management analysis (BWA) and a positive Schufa credit report. Anyone who cannot provide a BWA usually has to pay a deposit or down payment or provide proof of a guarantee. In addition, the business must have existed for at least six months, in some cases even for 12 months.

Private leasing of vehicles usually seems more expensive than commercial leasing. The reason for this is usually the tax advantages from which business customers benefit. They can deduct the leasing installments from their taxable profit as operating expenses. If you deduct the tax savings from the leasing costs, then commercial leasing is cheaper than private leasing. In addition, companies often lease not just one vehicle, but several. This is why retailers often grant volume discounts.