A lease car as a company car is now almost outdated. Even as a private individual you can now lease a car cheaply instead of choosing to buy a new or used car. And private leasing has clear advantages when it comes to maintenance, insurance and road tax. What exactly are the benefits of private car leasing? Are there any disadvantages of leasing a car privately? And what are the costs of a private car lease versus buying?
What are the benefits of leasing a car privately?
Any businessman or businesswoman can easily explain the benefits of a lease car. For example, consider the following benefits that leasing entails:
- You always drive a new car, because you change cars every two years
- You can therefore always choose from the latest models
- You can have the car finished to your liking with all the extras
- You don’t have to worry about road tax, maintenance or car insurance
- There are clear tax benefits associated with driving a lease car
- If you have a breakdown, all you have to do is call the lease company to be immediately rescued from the situation and get a replacement car
It goes without saying that leasing as a private individual has exactly the same benefits and so if you go for convenience and often have to choose a new car, leasing a car is definitely something you should consider. Moreover, private leasing is not as expensive as is sometimes thought.
Every month you pay a fixed amount and unexpected costs are not there, unlike with a vehicle owned. You don’t have to worry about the costs of an unexpected repair.
Are there any drawbacks to leasing a car as a private individual?
Of course you pay something for all those benefits. It is therefore important to realize that a new car normally does not cost as much in maintenance as a second-hand car. When it comes to lower maintenance costs, this is not always a good argument compared to a car that you buy new from the dealer. However, when you compare the private lease car with a used car, it is a completely different story. Because that second-hand car does entail costs and these can also come very unexpectedly.
You should also realize that the tax benefits of a private lease only apply when you also use the car for business purposes. When you only use the lease car privately, the tax benefit does not apply.
What does the private lease car cost? Is leasing privately cheaper than buying?
Whether private leasing is cheaper or more expensive differs. It is best to calculate the monthly lease amount over a period of a number of years and then subtract car insurance, road tax and estimated costs for maintenance. Also check whether the lease company or the car brand charges a kilometer allowance or whether you pay an all-in monthly amount. Depending on the outcome, you can now decide whether opting for a private lease car is a smart idea or not.