With the growing popularity of private lease in the Netherlands, it is clear that more and more people are discovering the benefits of it. From financial savings to the freedom to choose a brand new car without worrying about maintenance costs, private lease offers an attractive alternative. Therefore, this article will delve deeper into what private lease actually is and what the benefits are.
What does private lease mean?
A private lease, what exactly is that? Private lease is a form of car leasing specifically designed for private individuals. It allows individuals to rent a car for a longer period, usually between 12 and 60 months, without having to actually buy the car. Instead, the lessee pays a fixed monthly fee for the use of the car, which often includes costs such as insurance, maintenance and taxes.
Advantages of a private lease
Private leasing has several advantages that make it attractive for private individuals. Read more about all the pros and cons here. These are the benefits in a nutshell:
- You pay a fixed amount every month, so you won't be faced with unexpected costs.
- Many things included in the monthly amount: insurance, road tax, breakdown assistance, damage, repair, maintenance and MOT.
- Opportunity to drive latest cars.
- No down payment or final payment required.
- No trade-in value or hassle with selling the car after leasing.
Cons
Private lease usually offers more advantages than disadvantages. However, there are things that can be disadvantageous if you do not first understand the conditions of a provider. These can be possible disadvantages:
- Since you are entering into a financial agreement, it is not always easy to get out of it.
- With higher mileage, a higher payment logically follows. The payment method also varies per leasing company.
- You do not own the car, so the residual value is not yours either.
- No-claim discount expires more often.
Difference between a private and short lease
Private leasing is not the same as short lease. A private lease is usually a long-term contract, often for a period of 24 to 60 months. The short lease is intended for shorter periods, usually between 1 and 24 months. Do you also want to lease a used car? Purchase your lease on this page.
Difference between business leasing and financial leasing
Business leasing is similar to private leasing, but the difference is that you do pay an additional tax based on the CO² that you emit. Furthermore, business leasing is a form of car leasing that is aimed at companies and entrepreneurs. In contrast to private leasing, where private individuals lease a car, business leasing is specifically offered to companies. Financial leasing is a form of financing, where a company purchases a car and pays for it in installments. In contrast to operational leasing, where the ownership of the car remains with the leasing company at the end of the lease contract, financial leasing offers the possibility for the lessee (the company) to eventually become the owner of the car.
How does a private lease work?
You choose a car online that fits within your budget and meets your needs. This can be a new or used car, depending on the car dealer's lease offer. When concluding the contract, you determine the term and the number of kilometers you expect to drive per year. These factors influence the monthly lease costs. Sometimes a down payment is required. In addition, a BKR assessment (Bureau Krediet Registratie) is usually carried out to assess your creditworthiness. Read more about leasing a car without BKR here. At the end of the contract period you return the car or take over the car. Any additional mileage or damage beyond normal wear and tear may incur additional charges.
How much does a private lease cost?
The costs of private leasing are paid periodically via a fixed monthly amount, varying between 279 and 3125 euros. This price differentiation is based on the chosen car model, with the Volkswagen up! positioned at the bottom of the spectrum and the Audi Q3 at the top. In addition, the final price is influenced by the catalogue value, contract duration, and monthly kilometers driven.
Not included in price
Please note that the following items are not included in your monthly costs, such as:
- Fuel costs
- Regularly wash the car
- Any fines
- Any toll road charges
