Fleet financing, along with fleet management, is one of the two basic components of full service leasing. ALD Automotive pays the cost of purchasing a vehicle, and then makes it available to the customer in exchange for a monthly leasing payment.
Fleet financing under full service leasing is based on an operating lease agreement. This solution ensures tax and accounting advantages:
- a fixed monthly payment – predictable costs,
- leasing payments are a tax-deductible cost for the customer – this means that they can be deducted from the tax base, reducing the amount of corporate income tax payable,
- vehicles are not a burden on the company’s balance sheet – this means increased financial liquidity and credit worthiness,
- ability to reclaim VAT up to the legally permitted amount.