With Operating Lease, your company can enjoy new cars with a simple monthly fee and no residual risk liability.
The way Operating Lease works is very straight-forward. At the start of the contract we agree on the terms of the lease, including a mileage limit and lease duration. We then calculate the vehicle depreciation over the lease period and agree on a fixed monthly fee.
More stability, less risk
The great thing about this fixed amount is that it allows you to accurately forecast and plan your budget. All charges are included in this monthly fee, which means there’s no large payment to be made at the end of the contract and no depreciation risk. This can be beneficial to companies who are looking for financial stability.
Operating expenses that create capital benefits
Leasing charges are treated as operating expenses for you and are therefore tax deductible. For companies which are not publishing under IFRS16, these costs stay off the balance sheet and company capital is unaffected, meaning positive ratios for potential investors. Companies publishing under IFRS will have to account for a right-of-use asset and lease liability. This effect on the balance sheet, however, is still substantially lower compared to outright purchase and as such capital benefits remain.
Flexible add-on services
Here at Alphabet we take a tailor-made approach to mobility solutions. With Operating Lease, as with all our products, we offer the flexibility to include the additional services you need. These services can include maintenance and repair, accident management, fuel cards and many other add-ons that assist with the management of your fleet.