Renting and leasing a minibus, what is the difference

The first has been around for decades, the second is relatively new. recent, but people are often confused knowing each other: It's leasing rent (a long or short term) are the two main alternatives to buying capital assets, including a work car, but in between many differences... Let's see what they are.

Leasing, purchase by installments using VAT numbers

In essence, leasing is an installment payment for companies or professionals who own VAT... As with a loan, it provides a payment plan, usually for three years, with monthly payments that cover a portion of the loan amount. car price, interest and additional costs.

During this period, the car actually belongs to company leasing, which allows you to use it in to rent... Thus, the customer uses it as if it were actually his. At the end of the contract, you can redeem residual value vehicle and finally take possession or replace it with a new one by concluding another contract.

The agreement includes a deposit of mileage: if you pass it, if you decide not to buy a vehicle, but to change it, you will have to pay a fine.

Additional costs such as road tax, insurance, maintenance are paid by the customer and may be including at a monthly fee or separately. The biggest advantage for VAT holders is the ability to load a significant portion of the costs, 20% rental cost and 40% VAT, including other operating costs such as fuel and motorway fares.

Rent, freedom of use without (many) thoughts

Unlike leasing, leasing is not a partial purchase, but Rent car for a fixed period, as well as without VAT. Hence the definition of "Leasing for individuals", which creates some confusion.

Yet again own acts as a lessor, and even here, those who wish can buy the car at the end of the set period, paying the rest of the cost, but if this does not happen, it is simple returned.

rental Benefits

Il advantage the main one is that it does not imply any purchase obligations and, therefore, does not present the client with a problem associated with the need, sooner or later, to take responsibility for the asset, which in the meantime is "outdated", losing value and may not technically be updated, which is very common today when safety and environmental standards are evolving rapidly.

Long or short term rentals almost always include “all inclusive", which includes in installments the costs of road tax, insurance and service scheduled, tire change and other services to relieve him of all worries. Also, of course, there is mileage restriction which can also be changed during construction adjustment of the commission. And also rent, including performance services, provides tax incentives for those who are eligible for them.