Poles buy 240,000 new cars every year, and it is well-known that a significant part of this sum falls on company cars. Increasingly, however, entrepreneurs do not want to reduce their liquidity, so they decide to lease. This option seems to be the most advantageous if we take into account that leasing installments are tax-deductible and de facto reduce income tax (this is the effect of the tax shield).
When deciding on leasing , we must determine which of its options will be the most advantageous for us. An operating lease is in fact an agreement that assumes that a lessor gives the lessee the right to use his property – in our case a car – in exchange for appropriate fees, i.e. installments. It is legally a service, and the tax (calculated on each lease installment) the lessee can write off . The entire installment (capital part + interest) is the tax deductible cost, as well as the initial payment and the car use costs. It seems profitable. It should be remembered, however, that the car’s depreciation costs are deducted by the lessor, because he is the owner. There is also some restriction: according to the guidelines in tax law, the contract must last a minimum of 40% of the depreciation time, or two years in the case of a passenger car. The option to buy a rented car is fixed – depending on the depreciation rate and the redemption period.
In turn, financial leasing consists in the fact that the car will be included in our assets and therefore we will write off the depreciation costs. In addition, the interest portion of the leasing installment will be the tax deductible expense. From a legal perspective, financial leasing is a delivery of goods. We have to pay VAT on all lease payments at once – along with the first installment. This is a big challenge, especially for start-ups. However, for companies that are not VAT payers, this option is beneficial. At finance lease, the contract must include a minimum of one year, and with the repayment of the last installment the car is our property.
Deciding which option is better depends on the specificity of the company. However, regardless of which option we choose, the question remains: who offers the best conditions? First of all, it’s best to analyze a few offers – you can use financial calculators , but it is also worth reading about the conditions provided in individual banks (because, however, in such delicate matter it is best to trust professional and proven institutions than unknown institutions). The more so because the large competition means that the offers are getting better.
Volkswagen Bank boasts that leasing procedures are so simplified that it is enough to present only the company’s registration documents and one document confirming our identity, and the decision is made within an hour.
Due to the decrease in WIBOR rate , which is the basis for leasing offers, we are increasingly seeing 100% leasing advertising, which means that all costs, procedures and transaction service are included in the price of a car in leasing . However, we must know that these offers are for short-term leasing and a significant initial payment. In the case of a three-year lease, for example in BMW Financial Services Polska for the X5 and X6 models, it is already 101%, and the own payment is 25%. The standard is leasing 103-105%, as in the case of leasing Subaru in Raiffeisen-Leasing Poland – 103.99% for two years. In the thick of offers, however, you should look for promotions. For example, RCI Banque offers a two-year leasing of Renault vans for really good conditions: the total cost is 100%, zero initial fees, and the option to buy ̶ 19%. Of course, such baits apply to selected models, but it is always worth comparing several offers before the final decision.
Among such many proposals, finding the one, preferably profitable one, will not be easy, but it is worth looking for, because the increase in competition translates into better conditions. What’s more, for some time the lessors are more willing to negotiate individually, and this opens the door to even greater discounts.