Which type of truck leasing should you choose? A comparison of available financing options

What is truck leasing?

Truck leasing is a financing method that allows transport companies to use trucks without purchasing them outright. Leasing combines elements of rental and credit, whereby the lessor (e.g., a leasing company or bank) grants the lessee (e.g., a transport company) the right to use the truck in exchange for regular lease payments.

Definition of a Truck

In the context of truck leasing, it is essential to ensure that the vehicle meets the definition of a truck under VAT regulations.

For VAT purposes, a truck is a vehicle with a gross vehicle weight exceeding 3.5 tons. Additionally, the following vehicles may also qualify as trucks:

• Vehicles "structurally intended to carry at least 10 people including the driver, if this is confirmed by documents issued under road traffic regulations" (per Article 86a(3)(1b) of the VAT Act).
• Vehicles whose construction prevents their use for non-business purposes or renders such use negligible (per Article 86a(4)(2) of the VAT Act).

According to Article 86a(9)(1-2) of the VAT Act, such vehicles include:

1. Motor vehicles, other than passenger cars, with a single row of seats separated from the cargo area by a wall or fixed partition: a. Classified as multi-purpose or van type under traffic regulations, or
   b. With an open cargo area.
2. Motor vehicles, other than passenger cars, with a driver's cab (one row of seats) and a cargo body that are separate structural components.

If the vehicle's construction prevents private use, compliance must be confirmed via a technical inspection carried out by a regional vehicle inspection station, with a certificate and a vehicle registration document annotated accordingly.

Types of truck leasing

There are several types of truck leasing, each governed by different rules and conditions, which may significantly impact the lessee depending on their financial situation.

Operating lease

The most common form of truck leasing is the operating lease. During the lease term, the vehicle remains the property of the leasing company, which performs depreciation.

Importantly for the lessee, the operating lease allows for the deduction of lease payments, the initial fee, and vehicle operating costs as tax-deductible expenses.

At the end of the lease term, the lessee may purchase the vehicle for a predetermined residual value.

Operating lease and vehicle buyout

A lesser-known but crucial aspect of the operating lease is the restriction on early vehicle buyout. Under tax regulations, an operating lease must last for at least:

• 24 months for passenger cars;
• 36 months for trucks, tractor units, and many types of machinery.

This relates to tax depreciation periods—5 years for passenger cars and 7 years for trucks. To be recognized as a tax-deductible cost and allow full deductions, an operating lease must span at least 40% of the asset's depreciation period.

This restriction can limit flexibility, affect fleet management strategies, and lead to unexpected costs or delays. In such cases, a financial lease may be a more suitable option.

Financial lease

The financial lease is another popular form of truck financing. In this model, the lessee effectively becomes the owner of the vehicle during the lease term and must pay VAT upfront upon signing the agreement.

The truck is included in the lessee’s fixed assets, and depreciation is performed by the lessee.

Upon lease expiration, ownership of the truck is automatically transferred to the lessee.

Sale and leaseback

Under a sale and leaseback arrangement, a transport company sells a truck to a leasing company and then leases it back.

This method frees up capital tied up in the vehicle, which can be allocated to other investments.

It is common practice for such leases to have a term of six months from the date the leasing company acquires the vehicle.

Truck leasing and VAT

Truck leasing carries various tax implications, particularly regarding VAT. Deductibility depends on the type of lease.

VAT deduction in operating lease

In an operating lease, VAT is added to each installment and may be deducted on an ongoing basis. For trucks, 100% VAT deduction is generally allowed.

However, if the vehicle is also used privately, only 50% of the VAT may be deducted—though this rule applies mainly to passenger vehicles.

VAT deduction in financial lease

In a financial lease, VAT is payable in full upfront with the first installment. The lease is treated as an installment purchase. The vehicle is added to the lessee’s fixed assets, and depreciation is carried out by the lessee.

As with the operating lease, VAT can be deducted in full or in part depending on whether the vehicle is used exclusively for business.

Conditions for full VAT deduction on passenger cars

To fully deduct VAT on passenger cars, the lessee must prove exclusive business use. This requires:

• Maintaining a mileage log;
• Implementing a company car use policy;
• Demonstrating non-private use (e.g., via GPS monitoring).

Thus, truck leasing can be a tax-efficient way to finance a vehicle while optimizing VAT costs.

Key terms in truck leasing agreements

When leasing trucks, companies should pay attention to specific contractual obligations, including:

• Servicing at authorized service centers (ASO) or approved garages;
• Maintaining the vehicle in good technical condition;
• Compliance with the manufacturer’s warranty terms;
• Purchasing comprehensive insurance coverage, including third-party liability (OC), collision (AC), personal accident (NNW), and roadside assistance;
• A down payment based on the vehicle’s value (typically agreed individually);
• Usage restrictions, such as prohibitions on transporting hazardous goods or modifying the vehicle without consent;
• Ban on driving the vehicle outside the EU.

All leasing terms are detailed in the lease agreement. A thorough review is crucial to avoid unexpected costs that could affect business operations.

Lease loan (pożyczka leasingowa)

A truck can also be financed via a lease loan—a hybrid form of leasing and credit.

Like in a financial lease, the lessee becomes the vehicle owner, enabling depreciation and deduction of interest as a business expense.

What distinguishes a lease loan from a traditional loan is that it is issued by a leasing company rather than a bank.

Lease loan and used truck leasing

When acquiring an asset through a lease loan, VAT may be deducted from the purchase invoice if the purchase is related to taxable business activity and properly documented.

Another distinction is eligibility for EU funding. Leasing typically does not qualify, whereas lease loans often do. Lease loans are also less restrictive than typical lease agreements.

Cash purchase vs. leasing

A truck can also be purchased outright using cash. This is often cheaper than leasing, as it eliminates leasing-related costs such as interest or potential buyout fees.

Cash purchases immediately confer ownership, with no contractual restrictions, allowing for vehicle modification or opting out of comprehensive insurance.

The asset can then be entered into the company’s fixed assets register and depreciated as a business expense.

However, not all companies can afford to buy vehicles outright. Leasing allows costs to be spread over time and offers access to essential business tools.

Choosing a leasing company

When selecting a leasing company, consider the following:

• Leasing offer: including terms, rates, down payment requirements, buyout options, and contract flexibility;
• Additional costs: such as fees, commissions, early termination penalties, or insurance requirements;
• Company reputation: based on customer service, contract transparency, and user reviews;
• Tailored transport offers: such as longer lease terms, higher mileage limits, or simplified procedures for transport companies.

Price alone shouldn't dictate your choice—the quality of service and contract terms are equally important.

How to compare leasing offers?

Just as when choosing a provider, comparing leasing offers should be based on concrete criteria, including:

• Total cost of leasing: including installments, upfront and final payments, and any additional fees;
• Down payment amount: usually between 10–30% of the vehicle’s value;
• Interest rates and additional fees: based on APR, required insurance, and early repayment options;
• Contract flexibility: including potential extensions or vehicle swaps.

Costs of truck leasing

The total cost of leasing a truck depends on several factors, including:

• Vehicle price – the more expensive the vehicle, the higher the lease installments and total costs;
• Down payment and interest rate – the down payment for truck leasing is typically 10–30% of the vehicle's value. The amount of the installments will depend on the leasing company and market conditions;
• Insurance and servicing – the leasing company may require a full insurance package and servicing at authorized service centers, which increases the overall cost.

Truck leasing – Summary

Leasing is a flexible form of financing that allows access to modern vehicles without having to commit significant own funds. However, it is crucial to choose the right type of leasing to match your company’s needs and select a trustworthy leasing company that offers transparent terms.

Choosing the right truck leasing option is a key decision for any transport company. Both operational and financial leasing have their advantages and disadvantages, and their profitability depends on the business profile, tax strategy, and future plans.

Before making a decision, it is worth thoroughly analyzing leasing offers, taking into account not only the monthly installments but also the total costs, buyout terms, additional fees, and vehicle usage limits.

If you need support in choosing truck financing options, managing transport company accounting, or calculating driver working time, we’re happy to help! Contact us and our specialists will assist your company!

Truck leasing – Frequently asked questions

We often encounter recurring questions regarding truck leasing, so here are the answers.