Financial Lease
Financial Lease Occasion: Leasing a Used Car
Updated
Leasing a used car via financial lease is a smart and affordable choice for many entrepreneurs. Because the initial depreciation has already occurred, the monthly payment is often significantly lower than for a new vehicle. This allows you to drive a presentable car with manageable monthly costs.
Choosing between a VAT-qualifying car or a margin-scheme car?
When acquiring a used vehicle, you can choose between a VAT-qualifying car and a margin-scheme car. With a VAT-qualifying car, the VAT is reclaimable, which is advantageous for VAT-registered businesses. You would then need to pay the VAT upfront.
A margin-scheme car no longer includes VAT, for example, because a private individual was the previous owner. This is useful if you do not want to or cannot pre-finance the VAT. Explore the available range of margin-scheme cars beforehand to determine what suits you.
Fiscal regulations for a used car
Even with a used car, you benefit from the fiscal advantages of financial lease. You can place the car on your balance sheet and deduct the monthly interest paid from your profit. For business and private use, if you exceed 500 private kilometres per year, you will be subject to the addition to taxable income (bijtelling).
Considerations when choosing a used car
When leasing a used car, pay close attention to the mileage, maintenance history, and the maximum contract duration. Financiers often set rules regarding the maximum age the car may be at the end of the lease period.
- Check the available maintenance history
- Consider potential future maintenance costs
- Note the maximum end-of-lease age according to the financier
What role does depreciation play with a used car?
The remaining lifespan and the expected technical condition of the used car are decisive for future depreciation. A well-maintained young used car will depreciate less quickly than an older model with high mileage. This consideration is crucial for entrepreneurs who wish to acquire or sell the car after the lease period. A favourable depreciation curve contributes to lower financial risk and a better return on your capital asset investment.
Are there specific maintenance obligations for a used car lease?
The condition of maintenance when purchasing the used car is therefore of great importance. A thorough pre-purchase inspection by an independent party can prevent many unexpected costs in the long term. Good and timely maintenance also extends the car's lifespan and helps preserve its residual value. Take into account the maintenance history and any warranties that may still apply to the chosen used car to minimise unpleasant surprises.
Frequently asked questions
Can you lease a used car without annual financial statements?
In many cases, it is possible for start-up entrepreneurs to lease a used car without extensive historical annual financial statements, depending on the acceptance conditions.
Do I have to return the car at the end of the contract?
No, with financial lease, after paying all lease instalments and any final payment, you become the full legal owner of the car.