Advantages of lease and disadvantages of cash payment

Lease Cash Payment
Price of car
  • Monthly rent has to be paid
  • Monthly regular pay
  • Pay cash at one time
  • Cash has to be prepared
Tax, insurance premium
  • All included in rent (an average monthly pay)
  • No business expense
  • A regular pay
  • Business expense has to be paid
Content All-directional service
  1. Vehicles
  2. Maintenance
  3. Insurance
  4. Pay fine for customers upon requests
  5. Substitute car
  6. Handling after lease
Vehicle only
ownership of car
  • Car ownership belongs to the leasing company
  • After lease car has to be returned
Buyer has the ownership。
Acounting matters
  • No increase in fixed asset
  • Input tax derived from invoice of rent can be legally deducted
  • Expense of rent can be seen as amortization and deduction for business income tax legally
  • Based on fixed asset legal depreciation expense will be added
  • Increase in fixed asset
  • Maintenance is the responsibility of the leasing company, if a related contract is signed
  • Vehicle management saves customers time and money
  • After giving the Company a call, things are settled
  • Lease can be continued and a new type of car changed
  • Car plate is owned by the Company and driver’s identification cannot be known for avoiding any harm
  • All costs are born by buyer; for a company needs many vehicles, additional personnel is required for management
  • Have to negotiate the price of maintenance
Handling of used car
  • Car is returned after lease termination
  • Any cancellation before contract termination, actuarial valuation has to be made
  • The used car has to be handled by buyer directly; the fixed asset has to be written off and loss calculated including process of measure conservatoire