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Private lease explained – Everything you need to know about private leasing a car

March 19, 2022

What is private lease?
Private leasing of a car gives you the opportunity as a private individual to drive a (new) car for a fixed amount per month. It is basically a form of renting. The car remains in the possession of the lease company and you can use the car by paying monthly. After the contract has expired, you can return the car to the same company.

What are the advantages of private lease?

Private lease offers several advantages compared to buying a (second-hand) car. Below we have listed five of them for you.

The price that you pay monthly for the car is an all-in price. Because it is a fixed amount, you often only have to pay for the fuel. The rest of the costs associated with owning a car will lapse for you as a private individual. You do not have to worry about the following matters when you lease privately:

The content may differ per provider. So always carefully read the conditions in a contract offered. What you always have to pay yourself are: fuel and parking costs, traffic fines, tolls and washes.

The biggest advantage of private lease  is that you don’t need tens of thousands of euros to drive a new car. As a result, you do not lose a whole lot of money in one go, but you can spread the amount over a longer period.

After your contract has ended, you can simply return the car to the leasing company. So you don’t have the hassle of trading in or selling when you want a different car.

You know every month what it costs to drive the car. So you don’t have to get nervous when the car is at the garage, because any expensive repairs are covered. No unexpected costs in that regard.

You enjoy all the benefits of a new car. Think of the latest technology in the field of security and connectivity. In addition, new cars are more economical, which means that fuel costs are lower than with an older second-hand car.

Are there any disadvantages to private leasing?

Are there also disadvantages to private leasing? Yes. It is important to know that you are entering into a contract for several years, which are often expressed in months up to 60 months. The longer the contract runs, the lower the monthly payments will be. This does not alter the fact that you have a financial obligation during the term of the contract and it is not always possible to terminate the contract free of charge. In addition, it is good to know that leasing a car has consequences for the amount of the mortgage if you still want to apply.

What does private leasing cost?

There are costs associated with private leasing. What you pay each month depends on a number of factors that together determine the total amount. It is a combination of the type of car that you want to lease, for how long and the number of annual kilometers you will drive it. Keep as a rule of thumb: the bigger the car, the more expensive and the shorter the term, the higher the monthly amount. The same goes for the annual mileage, which is often in 10,000, 15,000. 20,000, 25,000 or 30,000 kilometers per year is categorized, driving more kilometers means a higher monthly amount. Furthermore, leasing companies and/or car brands will charge costs for the options and decoration that you want on your car. For example, you may have to pay a few euros more per month for a towbar, winter tires or a special option package.

Claim-free years and leasing

A good point to keep in mind are the claim-free years that you have built up. On the one hand, they can ensure that you receive a discount on your monthly amount when you enter into a lease contract, but on the other hand, your claim-free years may not count when you lease a car. This is because the owner of the car is the leasing company and not the driver. Claim-free years often expire after 5 years, starting from the moment you no longer own a car. Not every lease company allows you to accrue claim-free years during the term of the contract. This may have consequences for when you buy your own car after private leasing, or enter into a new lease contract. You can often ask the lease company what is possible.