Standard service life
The standard service life (SSL) of a leased asset is usually identical with the service life of an asset as defined in the official depreciation on wear tables. Broadly speaking, it defines the period in which an asset will remain in use, irrespective of the indicative benchmarks provided under law. This may refer to both company and personal use. In operate lease, tax reasons dictate that the leasing term is between 40 % and 90% of the standard service life.
The lessee receives a 75% share of the surplus proceeds if the lessor sells the vehicle at the end of a leasing contract with right to sell. However, this is only the case if the leasing company does not sell the vehicle to the lessee and instead makes use of its right to sell.
The lessee is required to provide compensation for any shortfall if the lessor sells the vehicle at the end of a leasing contract with right to sell. However, this is only the case if the leasing company does not sell the vehicle to the lessee and instead makes use of its right to sell.
Sale and lease back
Sale and lease back is a special form, in which case the future lessee sells the asset in his possession back to the leasing company and then takes out a lease on the same asset. Leasing payments can be deducted in full as operating expenses.
Most leasing companies offer their customers full-service leasing, which includes a large variety of different service components. This may include the handling of maintenance and repairs due to wear, new tyres, fuel card management (processing of fuel purchases), insurance management and much more.