Choose between car rental or leasing: advantages and disadvantages compared
The common feature of long-term rental and financial leasing on vehicles is attributable to the payment of the monthly fee, which must be paid as per the contract and for its entire duration. From the fiscal point of view the differences are not particularly marked, given that the deductibility is the same and follows the same rules in both cases.
The only difference concerns the aspect of the production of capital losses or capital gains linked to the sale of the vehicle, given that only in the case of financial leasing is it possible, paying the redemption price, to also become the owner of the vehicle, while with the rental in the long term the vehicle remains the property of the company that offers the service. This difference can however be a watershed for the choice of one or the other vehicle use system.
Financial leasing vs long-term rental
One of the main differences between the two services lies in the fact that in financial leasing the fee paid serves to cover the cost of car use, and sometimes also includes insurance costs, but all other management and maintenance costs remain charged to the financed.
Furthermore, with the leasing contract you agree to agree a purchase price to become the owner of the car or vehicle, at the end of the loan (which can be more or less high depending on the type of contract stipulated, or depending on whether it is a contract was chosen with a higher fee and lower redemption price or vice versa).
In any case, you will become the owner of a car that has lost its value over time (loss or capital gain depending on the case).
With long-term rental, there is no way to become a car owner, so at the end of the contract you can change your car or vehicle by signing a new contract. In addition, the periodic fee includes all management and maintenance costs, including extraordinary maintenance as well as ordinary maintenance.
Better leasing or long-term rental
The choice must depend on various factors even if in the first place there must be those related to the part of fiscal management, also considering the fact that to have the 100% deduction it is necessary to show the exclusive use for the work activity and not for mixed use (with the exception of commercial agents who maintain a share of 80%).