5 pitfalls with private leasing
A new car at a fixed monthly rate, including maintenance, repairs, damage repair, road tax and insurance. You only pay for the fuel. It is no wonder that private leasing is immensely popular. But do not be blinded by the seemingly low monthly costs. Watch out for the following snakes in the grass!
1. Kilometers per year
The monthly rate that is advertised is tied to a maximum number of kilometers per year that you are allowed to drive with the car. Do you expect to drive more kilometers? Then the monthly rate also goes up. If you exceed the number of kilometers that you are allowed to drive, you often pay per extra kilometer driven. So think carefully about what number of kilometers is realistic. Also take unexpected events into account.
2. Duration
The longer the term of your lease contract, the lower the monthly payment. That seems attractive. But what if your income drops – can you still afford the monthly payment? Be careful before you sign a four- or even five-year contract. Don't be tempted into a long-term contract if you don't have a clear view of your financial future! Buying out a lease contract is throwing money away.
3. Mortgage
Many mortgage providers see private lease as a form of loan. For them, you have a debt and the monthly rate is the repayment. Having debts affects the maximum mortgage amount you can borrow. Leasing can therefore break you if you can or cannot afford your dream home.
4. Deductible
Although you pay a fixed monthly amount with private lease, you can still be faced with unexpected costs. In the event of damage, for example, you often have to deal with a deductible. Have you reserved money for this?
5. What do you actually lease?
Check carefully which car you are leasing. Is it an entry-level model or a more luxurious version? Also check how the lease amount was determined. For example, are there things included that you do not want, such as roadside assistance or replacement transport? Read more about other disadvantages of a private lease in this article, but also learn more about the benefits of leasing.
Do you lease your car or do you drive your own car, financed or not? Leave a comment! A rent a car in the Brunssum region of course that is still possible.
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Finally an honest article about private lease. It is not all roses and moonshine. I would be very uncomfortable in the car if I had a 'bundle' of 10.000 km
Hi
Tomorrow we get our private lease car. Have 17 inch instead of 16 inch rims plus new tires placed and therefore a bit more expensive in the lease.
Question, are the original rims and tires ours now? After all, if I had done this action after delivery, wouldn't they have been ours too?
Greetings. Frank Franssen
Hi Frank, I would ask the leasing company. I don't know how your lease contract is structured. But have fun with your new lease car!