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As our basic auto leasing service menu, we
offer two types of auto leasing: Operating leases and finance leases. |
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1)
Operating lease : |
2) Finance lease : |
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The lease expense is treated as an
operating expense in the income statement and the leased
vehicle does not affect the balance sheet. |
The leased
vehicle is recognized as an asset and payable recognized as
a liability on the balance sheet. |
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Type of Operating Lease :
- Full Maintenance
- Self Maintenance |
Type of Financial Lease :
- Full Maintenance
- Self Maintenance |
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Automobile
model and Annual taxes : |
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Operating Lease
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Finance Lease |
Automobile Model |
The customer can choose model manufacturer. Particular specifications such as
coating are possible as required. |
o |
o |
Annual Taxes |
Mandatory expenses |
o |
o |
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Insurance : |
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Operating Lease
|
Finance
Lease |
Compulsory |
Insurance premiums are determined by
type of automobile and engine size. |
o |
o |
Voluntary |
Bodily injury, property damage, passengers, and
automobile |
o |
o |
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Accident : |
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Operating Lease
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Finance Lease |
Handling |
Working with non-life insurance
companies ensures that accident claims are handled
smoothly. |
o |
o |
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Maintenance : |
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Operating Lease |
Finance Lease |
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Full maintenance
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Self maintenance |
Full maintenance |
Self maintenance |
General
inspection |
Inspection and maintenance are carried
out according to mileage. |
o |
. |
o |
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Breakdown/Repair |
Repair and maintenance are available as needed. |
o |
. |
o |
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Consumables |
During the lease term, the auto leasing company
provides general supplies. |
o |
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o |
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Oil |
Oil is changed according to the manufacturer’s
criteria. |
o |
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o |
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Tires |
Tires are changed every 50,000 km
or every 2 years whichever come first |
o |
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o |
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Batteries |
In principle, batteries are changed every 1.5 years
but they can be changed whenever necessary. |
o |
. |
o |
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Replacement Car |
The auto leasing company
provides a replacement car when inspection, maintenance, or repair takes
more than 24 hours.
|
o |
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o |
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| Balance Sheet : |
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Operating Lease
|
Finance Lease |
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Please consult with your
Accountant for treatment of
On Balance Off Balance.
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Off Balance
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On Balance
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