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Leasing guide: What you should look out for when leasing a company car

Do you need a new company car or are you looking for a commercial vehicle for your fleet? What could be more obvious than leasing a car? Leasing company vehicles is one of the most tried and tested forms of financing, especially for small companies. What should fleet managers consider when leasing and how do they recognize whether the leasing offer is the right one? We have compiled the most important tips for you in our leasing guide.

1. the leasing factor is what counts

The leasing rate is the most decisive criterion for many fleet managers. No wonder, as the budget of many companies is limited when it comes to purchasing new vehicles. However, you should not only pay attention to the monthly leasing rate itself, but also to the small print. Lure offers with low leasing rates almost always have a catch: short terms, low mileage or high final rates are not uncommon.

If you want to lease a new company car, you should therefore pay attention to the leasing factor first and foremost. This results from the ratio of the gross list price to the leasing rate under certain conditions, e.g. the term and the monthly costs. This makes it easier for you to compare the various discounts offered by the different providers. Basically, the lower the leasing factor, the better the leasing offer.

Fleet manager checks the leasing costs
Before you accept a leasing offer, you should think carefully about your budget and your expectations of the contract.

2. how much service is allowed?

Of course, a comprehensive service package is attractive, but it is also expensive. You should therefore consider carefully in advance whether you would like to make use of other services in addition to pure finance leasing. Many lessors are aware of the expense that a vehicle causes in the fleet and therefore offer a service package that includes costs for insurance, maintenance, wear and tear repairs and tire changes.

When leasing a new company car, the leasing factor is particularly important.

3 "Mind the Gap"

Reputable leasing contracts with fully comprehensive insurance cover the new value of the vehicle, not the replacement value. There is a lot of leeway in between, the so-called “gap”. It is therefore advisable to take out gap insurance so that a total loss of the car in the first few months of the leasing contract does not turn into a financial disaster.

4 Which type of leasing is worthwhile?

Another important point in our leasing guide is the question of which type of leasing is worthwhile. The two most common types of leasing are residual value and mileage leasing. While only the mileage counts with mileage leasing, with residual value leasing the residual value of the vehicle at the end of the contract is already determined at the start of the contract. If it is not sold at the agreed value, the lessee pays the difference. The risk of miscalculating residual value leasing is high and should therefore be considered.

5. analyze the vehicle fleet

Whoever has the data has the power. This also applies to the vehicle fleet. We therefore recommend that you create driver profiles for the various driver types in order to better estimate the mileage your employees achieve per year. This may be time-consuming, but it pays off in the long run when it comes to choosing a suitable leasing offer.

6. well maintained, is cheaper to lease

Train your employees in proper vehicle maintenance. You can stipulate how often a vehicle must be cleaned with the help of a handover contract. Alternatively, you can also include company car users in return damage.

Commercial leasing

Choose the right model for your fleet from the wide range of immediately available company vehicles.

7. take advantage of tax benefits

Legislation allows the VAT due on leasing installments to be claimed as input tax. Leasing installments can also be deducted from profits, thus reducing the tax burden.

8. also calculate during the leasing term

You should always keep an eye on the overall fleet budget, not only before signing the contract but also during the leasing period. Leasing rates remain the same during the term and can therefore be calculated on a long-term basis.

9. minimize the sales risk

If you have concluded a mileage leasing contract, the risk lies with the lessor. This means you don’t have to worry if an elaborately configured vehicle is no longer attractive to the market.

10. planning the leasing return

Think about the return during the contract period and avoid unpleasant surprises. With our checklist for the leasing return, you are optimally prepared for the return of company cars.

The most important facts about leasing a company vehicle at a glance

When selecting leasing offers, you should not only pay attention to the monthly rate.

Train your employees in handling the vehicle and ensure that it is cleaned regularly.

Take advantage of tax benefits to save money.

Further fleet knowledge

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