Don’t forget this when Private Leasing!
These days, you very often see advertisements to lease a car for a relatively low amount. Something like this often sounds too good to be true, paying 200 euros a month to drive a small but new car, that way the cost doesn’t seem too bad after all.
The forms of leasing
There are basically two lease forms.
- Operational Lease (OL). This amounts to the cost of usage, maintenance, depreciation, wear and tear, etc. It is important to note that the provider (here it is the leasing company) owns the car, not the driver.
- Financial Lease (FL). This is just the financial side. This is really nothing more than financing. Perhaps the biggest difference is that with a Financial Lease the driver does own the car, this can possibly be supplemented by a service module
So what is Private Lease (PL)?
Basically, PL is a form of OL. In fact, OL is very popular with larger companies that have a good number of cars, as they only pay for use and do not own them. PL is similar because you lease a car yourself like a company can lease a car for an employee. For PL, you don’t pay an additional tax liability, that is only if you get a company car. PL consists of the following components: Depreciation – Maintenance – Repairs – Replacement transport – Insurance – Motor vehicle tax.
PL is attractive to many people, if there is high demand for it there is also supply. So there are many providers in the market, all of whom have their own tricks. It is important to leave on the following:
- The small print. Read the contract carefully before signing it.
- Claim-free years. Because the car is not owned by you, you do not build up claim-free years.
- The cheap offers. You regularly see offers such as ‘from 199 euros’, however, these are not realistic.
- Mortgage. If you are planning to buy a house, don’t take out a PL. Leasing a car can have a very big impact on the possible loan amount, this can save up to more than 70,000 euros.
Cost
People often think because there are so many companies doing private leasing that it all doesn’t cost that much. Once there is supply and demand for it. The advantage that leasing companies have is that they have a very large number of cars in their fleet, so they can often negotiate substantial discounts for the purchase, maintenance and insurance of the cars. These prices are a lot higher for individuals.
Advantages
PL also has advantages, of course. The car you lease is new and still offers more security and confidence than an older car, especially if you have to cover a lot of miles regularly for work. If you don’t have the money to buy a good car, leasing is a great solution.
