A new car at a fixed monthly rate, including maintenance, repairs, bodywork, road tax, and insurance. You only pay for fuel on top of that. It's no wonder private lease is incredibly popular. But don't be blinded by the seemingly low monthly costs. Watch out for the following hidden catches!
2. Kilometers per year
The advertised monthly rate is subject to a maximum number of kilometres you can drive the car per year. Do you expect to drive more kilometres? Then the monthly rate will also increase. If you exceed the number of kilometres you are allowed to drive, you will often pay per extra kilometre driven. So, think carefully about a realistic number of kilometres. Also take unexpected events into account.
2. Run time
The longer the term of your lease contract, the lower the monthly payment. That seems attractive. But what if your income falls – 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 your financial future isn't clear! Terminating a lease contract early is a waste of money.
3. Mortgage
Many mortgage lenders view private leasing as a form of loan. For them, you therefore have a debt and the monthly rate is the repayment. Having debts affects the maximum mortgage amount you can borrow. Leasing can therefore make or break you if you can just manage to afford your dream home or not.
4. Excess
Although you pay a fixed monthly amount with private lease, you can still incur unexpected costs. In the event of damage, for example, you often have to deal with an excess. Have you set aside money for this?
5. What do you actually lease?
Carefully consider which car you are exactly leasing. Is it an entry-level model or a more luxurious version? Also, find out how the lease amount has been calculated. For example, does it include things you don't want, such as breakdown assistance or a replacement vehicle? Read more about other disadvantages of private leasing in this article., but also learn more about the benefits of leasing.
Do you lease your car or drive your own car, whether financed or not? Leave a comment! Car hire in the Brunssum region can of course always do that.
3 responses
Finally, an honest article about private leasing. It's not all roses and moonlight, is it? I'd feel very uncomfortable driving if I had a ‘bundle’ of 10,000 km.
Hello,
Tomorrow we're getting our private lease car. We've had 17-inch instead of 16-inch wheels and new tyres fitted, so it's slightly more expensive on the lease.
Question, are the original wheels and tyres ours now? After all, if I had done this action after delivery, they would have belonged to us then too, wouldn't they?
Greetings. Frank Franssen
Hi Frank, I'd ask the leasing company about that. I don't know how your lease agreement is structured. But enjoy your new lease car!