Operating Lease Frequently Asked Questions




1. What is the difference between Finance Lease (Capital Lease) and Operating Lease.
Operating Lease, unlike Finance Lease is a form of contract in which the lessee uses an object, subject to a rental contract. After the expiry of the Operating Lease contract, the vehicle under that contract shall be returned to the lessor, freeing the lessee from any risks and commitment to a secondary realization.
Operational leasing enables companies to accurately predict costs and is suitable for those who need to constantly update and modernize the fleet, without acquiring ownership of the car. Since this type of lease is neutrally-balance (it appears in balance sheets as a loan), concluding an operating lease contract in no way affects the balance sheet of the entity.
Monthly payments are recognized as an expense of the company in full
2. How to pick an Operating Lease partner? What criteria should you compare the companies with?
  • Good position at car dealerships
  • Liberty in choice of brand/model/engine
  • Great relationship with insurance companies
  • National-wide coverage
  • Well-organized service
  • Secure and reliable fleet for providing a replacement vehicle
  • Relative financial autonomy
  • Professional, competent and well-trained team
  • Ability to make flexible and timely decisions
  • Expertise in secondary car realization
  • Practical experience and knowledge in the sector
3. What are the advantages of the Operating Lease compared with the Finance Lease or purchasing of the car with cash?
  • No advance payments or blocking of working capital
  • Monthly, tax-deductible expense
  • Decrease of corporate tax
  • Right to use tax credit for the cost of rent and all incidental expenses
  • Flexible options for time of contract, mileage, monthly installment components
  • Insurance and service management
  • Comprehensive services and making resources for core business available
  • Planned and fixed costs for fleet
  • Reduced fleet documentation and monitoring responsibilities
  • Reduced risks of expenses flotation
  • Guaranteed constant mobility, independent from the need of servicing the vehicle
4. How to compare different Operating Lease Offers?
  • Presence of excess, advance payments
  • Components of the monthly installment restrictions of the service
  • Additional administrative fees, their amount and method of payment
  • Additional information about the practice of the company's on the market
  • Transparency and clarity of the offer
  • Validity of the offer
  • Other additional fees and terms and conditions
5. What can the monthly installment include?
  • Initial costs for registration in the traffic police
  • Vehicle tax
  • Third Party Liability
  • Theft and collision damage waiver
  • Personal accident insurance
  • Regular technical services
  • Replacement vehicle
  • Vignette stickers
  • Purchase, seasonal change and storage of tyres
  • Insurance and service management
  • Door-to-Door service
  • Unexpected repairs
  • Fuel
  • Others, according to customer requirements and capabilities of the service provider