What is Operative Leasing?
When talking about operative leasing, the first thing to mention is that we are not talking about a purchase of a vehicle (as is the case with financial leasing), but more of a long-term rental. The main idea is that the client rents the vehicle for a specific amount of time, and after this time passes – the vehicle is returned to the Lesser or optional it can give nominal price for purchasing a vehicle.
Who can use Operative Leasing?
It is a worldwide practice, that the operative leasing of vehicles is intended to be used by both companies and Private persons. When the solvent is proven, every physical person can sign a contract for operative leasing, after being approved by the lesser.
What are the advantages of Operative Leasing?
- Avoid having to pay the full cost of the vehicles up front, so you don’t use up your working capital or have to borrow
- Only pay for the vehicle over the fixed period of time that it is needed by you
- Easier to forecast cashflow as rates on monthly rental costs are fixed
- The cost can be more easily be planned to coincide with revenue coming into the business
- Reduce your tax bill by deducting the full cost of operation lease rentals from taxable income
- For companies that either do not pay tax or pay at the small company rate, the 100% tax allowances of operational lease rental are normally more beneficial than capital allowances for outright purchase options
- No need to worry about an overdraft or other loan being withdrawn at short notice due to changes in bank policy or personnel
- Maintenance and other service items can be written into operating lease or contract hire contracts, and will be managed by Inter Ways rent a car
- The risk is carried by Inter Ways Rent a Car
- Inter Ways Rent a Car can obtain better discounts due to our greater purchasing power