Financial leasing only involves financing the purchase price (i.e. without the services, nor the insurance). You can take ownership of the vehicle if you take up the purchase option and pay the vehicle’s residual value.
With operational leasing, you pay a fixed monthly rent for your company vehicle. This amount covers maintenance, tyres, a fuel card or charge point, insurance and breakdown assistance. At the end of the contract, you are essentially giving the vehicle back (i.e. there is no purchase option). So in this scenario, you don't have to worry about the residual value.
The best option for you depends on your needs. But there are also tax and accounting considerations to keep in mind. That is why it is always a good idea to get advice from your accountant.
A few other factors to consider are:
With a finance lease/renting, you are just financing the car, not the services. With an operational lease (or Full-service Car Lease), the main expenses are included in the fixed monthly cost. With an operational lease, there are no additional fees.
Operational leasing is often considered ‘more expensive’. But in practice, it can actually be cheaper. After all, you no longer have to compare prices and quotes and arrange maintenance, tyres, insurance, breakdown cover and all sorts of administration yourself. You can enjoy the convenience of a fully professional arrangement where everything is managed for you (an ‘all-in’ package).
If you opt for a finance lease but don't regularly maintain your vehicle, you also run the risk of it being damaged more quickly or not being in good running order. This can result in the value of the car at the end of the contract being lower than expected, which means you end up losing money.
ING takes several criteria into account when reviewing loan applications for company cars. The most important is your repayment capacity. A healthy financial situation increases the likelihood of loan approval. At ING, you'll get the most favourable terms, starting with an attractive interest rate. The term is similar to a car loan for private individuals in that you can pay off the loan within the term of your choosing. Additionally, the type of vehicle and its intended use can also be a consideration in loan approval.
"}},{"componentType":"sectionTitle","title":"4. Is there a discount for commercial electric vehicles?"},{"componentType":"paragraph","richBody":{"value":"There is a discount, if you get a loan for an electric vehicle, you are certain to get a discount. You can also get an additional discount for other sustainable investments at ING.
"}},{"componentType":"sectionTitle","title":"5. How quickly can I get a loan for company cars?"},{"componentType":"paragraph","richBody":{"value":"Are you self-employed or have a small business?
If you are an existing ING customer, you can arrange your financing online, in just a few minutes, either in the ING Banking app or online at Business'Bank. If you have your documents at hand, you can receive an answer in less than five minutes. Afterwards you choose: either you receive the money in your account as early as the next business day or up to a year later (free of charge).
"}},{"componentType":"highlight","title":"Would you like a bit of advice too?","richBody":{"value":"If so, we are easily reachable to fine-tune your arrangements with you.
Does your financing involve an amount in excess of 500,000 euros or a fleet of vehicles for a medium-sized or large company? If so, simply contact your banker to arrange a meeting.
Not yet a customer? We’re happy to provide you with a decision within 48 hours.
"}},{"componentType":"sectionTitle","title":"6. Can I also link insurance to my loan?"},{"componentType":"paragraph","richBody":{"value":"To make things easier for you, ING can link a Comfort Auto insurance policy (AXA Belgium) to your financing, with very attractive conditions. You can also opt for death insurance (NN Insurance Belgium NV). Death insurance covers your monthly repayments if you die before the end of the loan term. This would mean that your heirs would not have to pay off your car loan.
"}},{"componentType":"sectionTitle","title":"7. What insurance will I need for commercial vehicles?"},{"componentType":"paragraph","richBody":{"value":"You can choose from three types of cover: civil (or third-party) liability, mini-omnium and full omnium cover.
Your choice of policies will depend on a number of factors, including the age of the company car. We recommend full omnium cover for cars less than five years old. For cars between six and ten years old, a mini-omnium policy is usually sufficient. For commercial vehicles that are more than 10 years old, civil liability cover is usually sufficient.
Other factors may influence your decision, such as how often the company car is used, the vehicle’s value and whether or not you have financing for the car.
Apart from these three main types of cover, you can also choose additional policy options, for example, legal or breakdown assistance.
Do you have 10 or more vehicles that you want civil liability insurance for? If so, all your company vehicles can be managed under a fleet insurance policy.
Advantages include customised pricing per vehicle type, easy fleet management and transparent costs. With fleet insurance, you also do not have to provide a statement whenever you add or remove a vehicle from your fleet.
The calculation depends on a few factors, such as the age and occupation of the main driver, the number of years he or she has held a driving licence, the number of at-fault claims within the past five years, the vehicle's power capacity and the number of passenger seats. The actual use of the car is also a determining factor: it makes a big difference if the car is mostly for private use and occasional client visit or if your car is a truly commercial vehicle (e.g. how a gardening company or plumber would use it).
Civil liability cover can also be personalised, based on your profile and the use of the vehicle. This would be based on the number of miles driven per year, an exclusive or non-exclusive driver(s) or occasional young driver, business use without frequent trips, etc. For comprehensive insurance, the insured value of the vehicle determines the amount of the premium.
"}},{"componentType":"sectionTitle","title":"10. What is the claims process when a company car is damaged?"},{"componentType":"paragraph","richBody":{"value":"ING works with AXA for car insurance. You can report damage easily online (FR link). You can also upload all the relevant documents onto the platform. And you can track the progress of your claim online until it is settled.
Remember to take photos of the damage and note the contact details of witnesses. If a third party is involved, you will need to fill in a report. You can get more information by viewing: How to make a 'car' claim (FR link).
You can take advantage of additional benefits, like a replacement car and third-party payment system, if you choose a partner garage. Third-party payment means that the insurer makes payment directly to party involved, without you having to pay the full claim amount in advance. In practice, for example, the insurer pays the invoice for damage repaired at a partner garage directly to the garage.
"}},{"componentType":"highlight","title":"Want to know more?","richBody":{"value":"Compare leasing versus borrowing for your commercial vehicle
More information about financial leasing
Run a lease simulation (For ING clients)
"}}]},"legalZone":{"flexComponents":[{"componentType":"paragraph","title":"Disclaimer","richBody":{"value":"