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Car - Buying or renting

Tax risk: 🔥🔥 | Deductibility: 40% - 100%.

Lionel ROSU avatar
Written by Lionel ROSU
Updated over 2 months ago

📍 Car

No impact on expense deductibility

We deliberately leave out the leasing option. In fact, leasing is a hybrid solution between financing (your accounts hold the vehicle as a fixed asset in their accounts) and renting (you receive a rental invoice each month with VAT applied, and you have a purchase option at the end of the contract). We now present the two options usually encountered by BILLY customers:

Financing

Renting

Invoice

1x at time of purchase

Monthly

Purchase option at end

/

Minimum 16% VAT

VAT

On purchase price

On each monthly rent including interest

Ideal for

Keeping your car for the long term (over 5 years)

Reduce short-term cash outflows

+ possibility of including insurance, maintenance, etc. in the rent (no unpleasant surprises)

In 1 word

The cheapest

The most flexible

💡 Taking into account the new car tax system and the rapid evolution of the electric car market, we recommend the flexibility of renting. With a purchase option inflated to 20%.

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