What is the difference between financial and full-service leasing?

Financial leasing means renting vehicles, where your company only pays for the use of the vehicle. Servicing is not included in the lease. Financial leases have an agreed residual value for which the customer is liable. At the end of the agreement period, the car is usually sold to a dealership. If the sales price is higher than the residual value, the difference is returned to the customer. If the sales price is lower, the customer is charged for the difference.

Full-service leasing (Autoleasing) means the long-term leasing of vehicles with servicing included in the monthly payment. A full-service lease agreement states the lease period as well as a kilometre allowance, such as 48 months/30,000 km. The lease period and the kilometre allowance can be adjusted during the agreement period, if needed.

Full-service leasing includes the rent of the car, servicing and usage expenses

  • Our full-service leasing service (Autoleasing) is provided by NF Fleet. NF Fleet is a joint venture between Nordea Finance and Ayvens.
  • Full-service leasing does not tie up your company’s working capital.
  • You will know the costs of the car in advance. The pre-agreed monthly lease payment also includes servicing and ordinary repair costs. If necessary, you can include additional services in the agreement, such as insurance, tyre storage and fuel or charging costs.

  • Full-service car leasing contracts are usually 24 to 48 months long and have an agreed kilometre allowance between 10,000 and 30,000 km. You can also request a quote for a higher number of kilometres.

  • At the end of the lease, your company returns the car to the agreed place. 

  • Your company does not need to worry about the car’s resale value. 

With financial leasing, you only pay rent for the car

  • No separate collateral is needed to finance the car because the car will serve as collateral. 
  • The residual value of the car is determined when the agreement is made. If the car’s value at the end of the lease is higher than the repurchase price, your company may get some of the lease payments back. 
  • If your company wishes to continue using financial leasing after the lease period, the original agreement can be extended. 
  • The monthly lease payment only covers the cost of the car, so it is lower than the full-service lease payment. 
  • You pay your motoring costs, such as servicing, repairs, insurance and fuel or charging, as you see fit; they are not included in the lease agreement. This means you can use your company’s preferred suppliers and put services out to tender if necessary.  
  • The costs of the car are tax-deductible.
  • You can drive more than 30,000 km per year.
  • Your company is liable for the car’s resale value and for selling it.

How can I work out which form of car financing is suitable for my company’s needs?

Full-service leasing is suitable for companies that want predictable costs. The fixed monthly lease payment includes almost all motoring costs, from periodic servicing to tyres and vehicle inspections.

Financial leasing is suitable for companies that want to replace their cars often and do not want to tie up assets in car purchases. 

What our customers say about choosing leasing as a form of financing a car purchase:

“As the CFO of a fairly large company, I saw full-service leasing as a sensible option. The fixed monthly price of Autoleasing includes the car and nearly all costs of motoring, from servicing to tyres and vehicle inspections. As such, our company’s motoring costs are easy to predict, and we save capital and time that we can spend on business development.”

Read more about full-service leasing.

Highly competitive full-value insurance can be added to an Autoleasing agreement. Read more. 

“As a small-business owner, I chose financial leasing to finance the company’s car to avoid the need to use the company’s cash reserves for buying the car. My company can deduct the full lease payments as an expense in taxation. Value-added tax is deducted from each lease payment.”

Learn more about financial leasing.