What is and how does operational leasing work?
Operational leasing is a financing service provided to legal entities. They thus obtain the possibility to outsource all services related to the maintenance and management costs of a car or a fleet of cars. The company financing the operating lease, in this case Business Lease, assumes the responsibility for the management of the car or fleet in question.
This means that Business Lease undertakes to pay all taxes, insurance policies, Ro -vignette, repairs, overhauls and any maintenance operations, to manage the purchase, exchange and storage of spare tires, to provide roadside assistance if necessary and other associated services and costs.
The term popularly used to define operational leasing is “long-term leasing” which is a financing solution appreciated by companies internationally. Operational leasing is gaining more and more ground over traditional methods of purchasing a car by a company, as it leaves beneficiaries the opportunity to direct liquidity to what really matters for the business. It also relieves internal staff of all aspects related to the purchase, maintenance and maintenance of the vehicles in the fleet, as well as their resale.
Types of operational leasing
Business Lease offers its customers two distinct types of operational leasing for legal entities. They have their own characteristics, each suitable for a certain type of company, depending on the needs of each entity.
Net operating leasing and full operational leasing are two effective financing services for companies wishing to purchase a car or for expanding the existing car fleet.
FULL operational leasing
This form of leasing requires Business Lease to be the owner of the car. The company or person who opts for full operational leasing will only pay for its use. Through this service, the company’s employees will be exempted from all risks related to the purchase of a car, and all the responsibility will be taken over by Business Lease.
Advantages of the full operational leasing service:
- A clear overview on costs for the coming years;
- Benefit from complete maintenance and repair services for the purchased car or fleet;
- The vehicles will not be in the accounting records of your company;
- A matrix that can give you transparency and predictability in terms of maintenance costs depending on turnover and period.
By purchasing the FULL (complete) operational leasing services offered by Business Lease, your company will be exempted from the entire car purchase process, but also from its sale at the end of the contract. In addition, maintenance costs and related repairs, purchase of tires, replacement and storage will be fully managed by the lessor.
All taxes and duties, MTPL and CASCO insurance are also the responsibility of Business Lease. Full operating leases also include fuel card, roadside replacement car assistance, if needed.
Another important aspect is that Business Lease will manage everything, including the fuel card, replacing the car in case needed, paying for insurance, taxes, picking up and delivering the car, and the customer will also receive an online report.
In exchange for this service, your company will operate safely, paying a fixed monthly rate. There will be no unforeseen costs or risk of residual value, and the cars will be in the accounting records of Business Lease .
NET operational leasing
Through this form of leasing, Business Lease is the owner of the car, managing the purchase of the car, registration, taxes and insurance.
What companies can finance through operational leasing
Leasing represents without a doubt the future in terms of how medium and large companies in Romania operate, and this is already a norm in the economies of the United States of America and Western Europe.
With the help of operational leasing, a company can obtain:
- freight vehicles and
- some specific categories of equipment.
These cars will remain in the accounting records of the company that provides operational leasing services.
An advantage of this type of leasing is that it does not involve the advance payment for a certain car, but only the monthly payment of fixed installments.
Operational leasing is an easy to access solution to having a car park for legal entities , because the costs of their maintenance will no longer be borne by the customer. Your company’s employees will be able to stay focused on their tasks, without worrying about service scheduling, charging the fuel card or other maintenance activities. All these things can be taken over by Business Lease, and your company will pay a fixed monthly rate, included in one of our operational leasing packages.
To ensure that you receive the best leasing services, please feel free to contact our specialist consultants to receive a free offer.
Business Lease offers an extremely wide and varied range of Leasing and Consulting services: operational leasing, fleet management , Sale & leaseback , ReLease, consultancy and short term rental. Depending on the needs of your company, we can create specific packages that fit the profile of your needs.
Frequently asked questions and answers
What does operational leasing mean?
Operational leasing is a commercial operation by which a lessor or financier, transmits to the client the right to use a good, in this case a car. The customer will use the good for a predetermined period in the contract.
How is it used?
The customer can use the leased car for the entire duration of the contract, paying a fixed monthly rate.
How much does a leased car cost?
The costs of a leased car differ depending on the fixed monthly rates set out in the contract.
What are the advantages of leasing?
The benefits are that no advance is required to purchase a car, and all maintenance and repair fees and costs will be included in the monthly rate.
What is the maximum duration of operational leasing?
The maximum duration of an operating lease is 57 months, and the minimum duration of such a contract is 12 months.