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What is private lease?

Private lease is a form of car use where you drive a new car for a fixed amount per month, without having to buy it yourself. You enter into a contract with a leasing company and during the term you pay a fixed amount. This amount covers almost all costs except fuel and any traffic fines.

Advantages of private leasing

No large upfront investment: one of the biggest advantages of private lease is that you do not have to make a large investment. When buying a car, you often have to pay thousands of euros at once or take out a loan. With private lease, you pay a fixed monthly amount, which preserves your financial leeway.

All costs are included: with private leasing, almost all car costs are included in the monthly fee. Consider:

• road tax
• All-risk insurance
• Maintenance and repairs
• roadside assistance
• Depreciation expense

So you have no unexpected expenses and know exactly where you stand financially.

No worries about maintenance and repairs: maintenance and repairs can be quite expensive, especially in modern cars with advanced technology. With private lease, these costs are covered. All you have to do is make an appointment at an affiliated garage and the rest is taken care of.4. Always a new and safe car

Leasing companies usually only offer new cars. That means you’ll always be driving a modern car with the latest safety features and technologies. Think driving assistance systems, more efficient engines and connectivity options like Apple CarPlay and Android Auto.

Fixed monthly amount with no surprises: financial predictability is a big advantage of private leasing. You pay a fixed amount each month, with no unexpected costs. This allows you to plan your budget better.

Ability to drive electric: electric cars are more expensive to purchase, but with private leasing, electric driving becomes more accessible. You don’t have to pay a high purchase price all at once, and there are often favorable lease arrangements for electric vehicles.

Disadvantages of private leasing

While private leasing has many advantages, there are also disadvantages to consider.

Contract duration and termination penalty: a private lease contract often runs between 24 and 60 months. If you want to terminate earlier, you often pay a hefty termination penalty. This can be a problem if your situation changes, for example, due to a move, family expansion or job loss.

Limited mileage: your lease contract sets a maximum mileage per year, for example 10,000 or 15,000 km. If you drive more, you pay an extra amount per kilometer. This can add up if you drive a lot.

No car ownership: with private leasing, you do not own the car. This means you have no residual value at the end of the contract. If you prefer to own something and sell it later, buying is a better option.

Influence on mortgage application: a private lease contract is registered with the BKR (Bureau Krediet Registratie). This can affect your borrowing capacity when applying for a mortgage. Banks see it as a financial obligation, which can lead to a lower maximum mortgage.

Possible costs for damage: although all-risk insurance is included, there may be additional costs in the event of damage, such as a deductible. This can vary by provider and contract, so pay close attention to this when signing up.What should you pay attention to with private leasing?

Private lease: tips in a row

If you are considering leasing a car, there are a few things you should pay close attention to:

Compare providers: not all private leases are the same. Compare different leasing companies on price, terms and conditions and what exactly is included in the contract. Pay attention to any additional costs, such as administration fees or charges for replacement transportation.

Check the maximum mileage: determine in advance how much you drive on average per year and choose a contract that fits this. It is better to take a little more margin than to have to pay for extra kilometers afterwards.

Pay attention to the term of the contract: think carefully about how long you will enter into the contract. A longer contract means a lower monthly fee, but less flexibility. Think about your future plans before making your choice.

Check the terms for damage and insurance: some contracts have a high deductible for damage. Check what exactly is covered and what you may have to pay yourself. This prevents unpleasant surprises.

Keep in mind the BKR registry: because private leasing is registered with the BKR, it may affect future loans. If you want to take out a mortgage within a few years, it is a good idea to factor this into your decision.Conclusion: is private lease the right choice in 2025?

In a nutshell

Private lease still offers many advantages in 2025, such as financial predictability, convenience and access to new and safe cars. At the same time, there are also disadvantages, such as a long contract term, no ownership of the car and possible impact on your mortgage application.

Whether private lease is the right choice for you depends on your personal situation. Do you drive little and don’t want to worry about maintenance and unexpected costs? Then private lease can be a good option. Would you like more flexibility and prefer to own a car? Then buying or leasing a used car might be a better option. Compare different providers and read the terms and conditions carefully before making a decision.