OUTRIGHT PURCHASE	LOAN / FINANCE LEASE	OPERATING LEASE
Pay outright and own Claim depreciation Internally manage the fleet: Acquisition Registration Insurance Damage repairs Dealing with suppliers Authorising and paying suppliers Reselling the car etc Co. takes all the risks on the car	Borrow money from Bank/FI to buy the car Repay the whole principal & interest thereon Book treatment and other management same as outright purchase. At the end of tenure/early termination, company has to prepay the foreclosure amount Company is stuck with the car Co. takes all the risks on the car	Most common method for company cars used by corporates in Europe and in other mature vehicle markets Just outsource the whole vehicle acquisition, management and resale process Just pay a fixed monthly cost for using a particular vehicle All risks relating to maintenance overspend and losses on resale risks to be borne by the leasing company. Just paying for the depreciation (loss in value) expected on the use of the car over the lease period.