Whether to attract, retain or reward an employee, granting a company vehicle is often an excellent idea, both for the beneficiary and for the company.
In Luxembourg, more than 60,000 vehicles are managed by leasing companies. More and more employees and companies are using these specialists. Decryption.
A company vehicle that can be used for purposes professional and private is considered a company vehicle.
Benefits from the employee side
Among the many benefits, we can note access to higher discounts and thus drive a recent, better equipped and safer vehicle, for a significantly lower monthly budget compared to a purchase with equity.
With an average duration of 3 to 4 years, leasing allows drivers to choose any type of vehicle, namely city car, SUV or even utility vehicles.
When the choice is made, it is the leasing company which takes care of everything until delivery. The beneficiary pays nothing since everything is included, tires, maintenance, insurance etc.
The company car is part of the full compensation, therefore salary. It is a benefit in kind which is subject to tax. It is calculated on the new value all taxes included, and it is multiplied by a percentage which varies between 0.5 and 1.8%, depending on the CO2 emission rate.
For example, for an electric vehicle, worth €50,000 including tax, the employee will be subject to social security contributions and taxes on the benefit in kind of €250 (0.5% x €50,000). For more details, consult the tax calculator.
NB From 2025, the benefit in kind will increase to 2% for thermal vehicles and from 1% to 1.2% for electric vehicles.
Benefits from the employer’s side
Operational leasing, in addition to being a factor in attracting and retaining employees, has good advantages for the company.
With fixed monthly rents, it is the assurance of controlling expenses. The time saving is invaluable because it is the leasing company that buys the vehicles and manages all the administrative procedures. Throughout the leasing, it is she who takes care of everything, tires, breakdowns, accidents, replacement vehicles, etc. In addition, leasing is a deductible expense for businesses.
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Change cars according to your needs!
Some leasing companies, such as Ayvens, offer packages to meet tailor-made requests.
Thus, a driver of an electric vehicle can request a replacement thermal vehicle for a day or a few weeks, to go on vacation for example. This allows you to benefit from the advantages of electric vehicles, while enjoying the flexibility of thermal
Ayvens, serving individuals and businesses
Ayvens is a trusted and local partner recognized in the mobility market in Luxembourg (for 40 years) with a fleet of more than 20,300 vehicles.
Its 33% market share makes Ayvens the leading leasing player in Luxembourg, serving professionals and individuals.
Its new brand identity and slogan, “Better with every move” promise to ensure smoother and more flexible mobility, while offering the best customer experience, and a more environmentally friendly fleet.
