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Euro Leasing - Operating leasing
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Operating Leasing

OPERATING LEASING means long-term car rent with the registering and tax depreciation at the lessor's balance.

We offer you a minimal downpayment that includes all car registration expenses (as well as 3% contribution to the Pension Fund and necessary insurance payments). Your money is working for your business and your car is being financed with our money.

Leasing company bears all property risks; you do not need to worry about additional security deposit that may be necessary at crediting. We take into account the specificity of a client and analyse not only client's official accounts, but also other sources that certify their financial position.

We specialise in financial and current car service; thus you optimise your business by using outsourcing for providing your business with transport.

If you choose the operating leasing, apart from financing you receive a whole complex of services that include:

  • payment managing — the leasing company processes and finalises all book-keeping and other documentation that is concerned with car use and ownership; you contribute monthly payments as one sum and register them;
  • you get additional possibilities as for financial planning and controlling.
  • car registration with all taxes and dues paid at registration;
  • no direct and indirect expenses for car fleet;
  • installation of necessary additional equipment on a car;
  • regular technical maintenance at a certified service station;
  • winter tires set;
  • tires change and storage at leasing company’s warehouses in the appropriate conditions during the period of leasing agreement;
  • transport tax during the period of leasing agreement;
  • CASKO insurance in the best insurance companies;
  • the third parties liability insurance for a sum up to $100 000;
  • 24-hour helpline;
  • provision and administering of fuel credit cards;
  • car pick-up service to and from client's office for car service, airport;
  • provision of replacement car;
  • prolonging of the manufacturer’s warranty period until the end of leasing agreement validation term (warranty up to 5 years without mileage limitation).

Operating leasing from the book-keeping point of view.

Lessee does not reflect the cost of a vehicle received according to operating leasing agreement in the tax statement.

Lessee has the right to refer 100% of leasing payment to gross expenditure according to the results of the fiscal period for which the following accrual is made.

Lessee has the right to refer all of the VAT sum paid as a part of leasing payment to tax credit if the vehicle received is used in economic activities.

Unlike in the credit, in operating leasing the long term commitment as for the leasing payments is not reflected in the client's balance, and it is possible to use your financing limit for financing your business. That is why operating leasing is also called an off-balance financing.

How are leasing payments made?

After getting a car you make monthly equal payments during the leasing term. The downpayment is usually 20% of the car price, but it can differ from zero if you wish. You can also choose a scheme with the schedule of uneven leasing payments. Leasing payments include all necessary expenses for the car and can be included in company budget as a sum of total car expenses that eases budgeting and optimizes car park expenses./p>

Is it possible to influence leasing payments amount?

Yes, of course. You can choose the most optimal service package on your own:

  • standard (buying, financing, insuring, administration of insured accidents, tires, tires storage and assembling, regular technical maintenance, payment of all taxes and obligatory payments).
  • full service ("standard" + all repairs that are not covered by the manufacturer’s warranty or are not a result of an accident, passengers health insurance with coverage of $100,000 per car).
  • individual (options on client's demand).

We offer an article for managers of companies' financial departments "Relevance of operating car leasing in Ukrainian economics"

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