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Leasing comprises components of financing. Depending on the kind of agreement, purchase of the leased object after expiry of the basic leasing period may be expressly offered from the outset.
The investment decision is made by the lessee. In the case of leasing you choose which object is to be leased and who will supply it.
The responsibility for administration and maintenance lies with the lessee. You act as an owner in most cases. You ensure, for example, that the leased object is properly maintained. And you choose where the mandatory insurance will be taken out. You may, however, also leave this task to Deutsche Leasing.
Because leased objects are carried on the leasing company's balance sheet (not the user's) and leasing instalments are tax-deductible business expenses, for you leasing is an off-balance-sheet and strategic control instrument.
Depending on the kind of agreement, the assumption of the risk from utilisation of a returned leased object by the leasing company after expiry of the agreement makes it easier for you to cope with economic fluctuations and to manage innovation.
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