Buying a car is expensive. Not only do you spend a lot of money on the purchase, but if you are unlucky also on maintenance costs. When you use a private lease you can drive a new car for a fixed amount per month.
When you use a private lease, you can drive a (almost) new car for a fixed amount per month, which depends, among other things, on the duration of the lease contract. This monthly amount includes all car costs, with the exception of petrol. Advertisers often offer new cars for very low monthly amounts. Be aware that this usually concerns the simplest version of the car with a low number of kilometers driven per year and a lease contract that is as long as possible. Below you will find an overview of the pros and cons of private lease.
Advantages of a private lease
- You can drive one of the latest models without having to pay the full purchase price for it.
- You pay a fixed amount per month for the lease car. The only amount that comes on top of this per month is the amount for the petrol. The insurance usually also runs through the lease company and is already included in the monthly amount.
- When you lease a car as a private individual, you do not have to pay a tax addition. The amount for road tax is usually already included in the rent.
- Repair in case of damage or defects to the car is included in the lease price. You will therefore not be faced with unexpected costs and replacement transport is usually quickly arranged by the lease company in the event of damage or breakdown.
- When the lease period has ended, you simply return the car and you can possibly conclude a new lease contract for a new car. You don’t have to pay a final sum.
Disadvantages of private lease
- You sign a contract for a specific lease period. During this period you will have to make the monthly payment. It is not easy to terminate the contract and often there are costs associated with terminating the contract.
- An amount of interest is also included in the monthly amount. This is the interest on the amount that the lease company has invested in the purchase of the car. The amount of this interest is often considerable.
- It seems nice that the lease company takes care of all matters concerning the car, but a price is also charged for this within the monthly amount.
- You do not own the car and therefore cannot just let anyone drive your car.
- You do not build up a bonus / malus scheme with the insurance company.
- You must determine in advance how many kilometers you will drive per year. The monthly amount is based on this. Have you underestimated the number of kilometers? Then you still have to make a supplementary payment.
Small print in the lease contract
When you go through the lease contract, pay attention to what is included in the monthly amount. Sometimes the insurance taken out for you by the lease company does not cover all costs. Also pay close attention to whether the lease company may adjust the monthly amount during the contract, for example because there are tax changes. If this is the case, this may mean that you suddenly have to pay a higher monthly amount during the course of the contract.