When is business leasing attractive

Leasing or buying a car?

Business leasing can be a smart choice in the following scenarios:

• When you wants to maintain liquidity and would rather not invest a large amount of capital in a vehicle. Leasing usually requires a lower upfront investment.
• When you want to know exactly what your monthly costs are. With a leasing contract, you have fixed monthly costs, without unexpected maintenance costs.
• When you are a company want to stay flexible and want to regularly modify or upgrade your fleet. Leasing makes it easy to choose a new model after a contract period.
• When you don't want to have residual value risk or sales stress. When leasing, you do not bear the risk of depreciation of the vehicle.

When can buying actually be better?

• If you have the vehicle want to keep for a long time and want to become an owner, so that the costs are lower in the long run.
• When you want full control over the use, modification, or sale of the vehicle.
• If you expect the car to have a long economic life has and the residual value will be good.

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Car in the name of the company

If you buy a car in the name of your company, in principle, all costs are borne by the company. This means that the costs of the company car are deductible from the profit. You can deduct the following costs: insurance, maintenance and fuel costs, as well as VAT on the purchased car. This sounds attractive, but note: part of the VAT deduction may expire.

If you drive more than 500 private kilometres per year, you must also pay an additional fee. The amount of the addition depends on the type of car and the purchase value. For electric cars, an additional 16% will apply in 2024 for cars under 30,000 euros; for other cars, this is 22%.

Please note that the purchase costs of the car cannot be spent on other business matters, which means that there is less room for other investments. This is therefore one of the most important reasons for choosing short lease.

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Use a private car for business

If you have a car and don't have enough capital to buy a new one, you can choose to use your private car for business as well. In that case, you do not have a contract with a leasing company, you control the maintenance yourself and you do not pay an additional fee.

For each business kilometer, you can deduct €0.21 untaxed for your company. However, it is necessary to keep accurate records of your business trips with a trip registration for the tax authorities. You can calculate for yourself whether this allowance covers the number of kilometers you drive.

Often, however, the mileage allowance is not sufficient to cover all costs. This includes maintenance and repair costs, insurance costs and fuel costs. However, you can partially claim back the VAT on these costs.

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Business (short) leasing

Leasing a business car is not only suitable for companies with a large fleet, but also for freelancers and SMEs, leasing can be very attractive. A suitable lease contract is available for every company. In about 80% of the cases, leasing is cheaper than buying. Even if you don't drive a lot of miles, leasing can be interesting.

Leasing simplifies the management and maintenance of a car because VWP Shortlease takes over these tasks for you. This saves you a lot of time and effort. In addition, you pay a fixed monthly fee, including maintenance costs, insurance costs and road tax.

You only have to pay the fuel costs yourself. This way, as a company, you know exactly where you stand. Shortlease is therefore often found attractive when no initial capital is available.

Please note that if you also use the lease car privately for more than 500 km per year, you will have to deal with addition. In 2024, an additional 16% will apply to electric cars and 22% for other cars.