When leasing a vehicle, the lessee signs a contract with the lessor for the use of a vehicle, subject to stated terms and limitations, for a specified period, a specified number of kilometers and at a specified payment.
There are two basic forms of leasing. The difference between the two primarily lies in the economic and legal ownership of the vehicle.
The economic risk is borne by the client. The vehicle is usually carried on the client’s balance sheet.
The economic risk (mainly related to residual value) is borne by the lessor. In this case, the vehicle is carried on the lessor’s balance sheet, not the client's.
Depending on the kind of agreement, our clients have a choice between Open Calculation or Closed Calculation.
As the originator of Open Calculation, LeasePlan has achieved market leadership on the basis of this concept. It gives our clients full insight in all the costs actually incurred. With this type of agreement, LeasePlan bears the risk if the actual costs exceed the budgeted costs and the client is credited if the actual costs are less than the budgeted costs.
With a Closed Calculation contract, the client has limited cost transparency and any positive or negative divergences from the budgeted costs are for the account of the lessor.