The Advantages of Operational Leasing
An operational leasing plan, or long term leasing, offers many advantages over other company vehicle purchasing methods.
Vehicle Management
Budgeting
You know the exact cost of your vehicles and receive a single invoice each month.
Ease of management
LeasePlan handles all of the aspects associated with management of your fleet : from vehicle
registration to resale, through accident management or tax management. We manage everything
that concerns your vehicles to make you save time. It means less worries and more time for
your
business.
Lessor’s Negotiating Power
LeasePlan negotiates very attractive purchasing terms with all of its suppliers, terms that are obviously reflected in our offerings. LeasePlan will also review the various invoice items for you.
A single contact
For any problem concerning the vehicles, you contact LeasePlan, whose team of professionals will find an appropriate solution and eventually address the concerned suppliers in critical issues.
Lessor Expertise
Thanks to our knowledge of the automobile market and thanks to the information collected in our databases, we are able to provide you with the best advice available concerning your fleet.
Externalized technical risk
It’s not your role to manage the technical risks associated with your vehicles (unforeseen repairs, risks on the resale of the vehicle…). Automotive fleet management is our business, and we will handle this risk !
Flexible contracts
Contracts can always be adapted to change duration, mileage… We also do everything we can to find solutions adapted to your specific requests.
Accounting and fiscal aspects
Easy presentation on the balance sheet
Monthly rents are listed as expenses in the income statement. Therefore they do not affect the drawing of the balance sheet or the various ratios.
Favourable tax regime
The Luxembourg tax regime allows companies to deduct 100 % of leasing expenses. For companies subject to it (at 100 %), all of the VAT is also recoverable.
No pre-financing of the VAT
Contrary to classic financing, you do not pre-finance the VAT on the investment. In fact, you pay the VAT only on the monthly rents.
Resources saved for the core business
Long term leasing allows you to preserve resources (cashflow) for your core business. Furthermore you improve your company’s indebtedness rate and its return on investment.
Financing of actual use
With the operational leasing plan, you finance only the actual use of the vehicle, or the difference between the investment value and the residual value (estimated resale value at the end of the contract). Interest expenses are therefore reduced.
Costs are controlled and reduced
The operational leasing plan allows you to accurately assess the costs associated with the vehicles. Thanks to our different reporting tools, we can control these costs and implement, if necessary, a total cost reduction program (TCO).
Human resources
Leasing rents are not indexed
Your monthly lease payment is a fixed cost, protected from unexpected events, from interest rate increases, and from any inflation.
Easy evaluation of employees’ benefits
Operational leasing is the only plan that allows you to know at a glance the total cost and therefore the exact amount of the benefit granted to your employee.
Identical benefit in kind
Whatever the type of vehicle financing, the benefit in kind remains the same (1,5 % of the purchase price, including tax). Whether he benefits from a simple financing or from an allinclusive leasing plan, the employee will therefore be subject to the same benefit in kind. He may, however, deduct any personal participation (with a ceiling of 20 %).
Employee motivation
The operational leasing system allows you to recruit, to motivate, and to commit employees to the company through the financial benefits that it represents for them.
Benchmarking
Most Luxembourg companies now manage their vehicle fleets with the operational leasing plan.
Convenience for drivers
Leasing offers great convenience for drivers. All they have to do is submit a purchase order with each service performed on the vehicle (maintenance, tyres…). Through LeasePlan, they also have a specialized contact at their disposal for everything that concerns their vehicles.