Full service lease
With long-term rentals, you enjoy all benefits of your vehicle fleet but with a comprehensive service package on top. Vehicles are provided for use under an operating lease agreement which specifies the agreed mileage and lease term. The contract term is at least 24 months and the service scope covers at least three of the maintenance & repair services (with mechanical service always included).
You receive an invoice for the use of all cars covered by the agreement along with a management report once a month. The monthly fee is fixed for the entire contract term and can be written off against your business income.
With our flexible cooperation model in place, we can modify the contractual terms and conditions (such as the contract term or the agreed mileage) on your request, at any time during the contract term.
Your company’s benefits
- Fixed monthly fees
- Fixed car repair, service and operating costs
- Full control over the fleet budget
Tax benefits
- Off-balance sheet funding for companies which are not publishing under IFRS16 and company capital is unaffected. 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.
- Reduced operating costs - Alphabet can deduct VAT when purchasing vehicles and consequently, the lease payments are calculated for net car prices.
- Lease payments are deemed tax deductible costs or can be settled based on the car mileage records.
- Right to deduct VAT from the monthly fee up to the legally allowed limit.
Financial benefits
- Attractive discounts on vehicle purchases and repair and maintenance services.
- No risk related to the vehicle value during the lease term - the risk related to the residual value is borne by Alphabet.
