Why not choose private leasing?

Private lease has advantages, but also learn about the disadvantages. We have collected the biggest disadvantages for you and are happy to explain them.

In 2015, 36,000 cars with private lease contracts were driving around the Netherlands. In 2016, the number rose sharply to 64,000. Almost a doubling, in other words. ING economists expect that by 2020 there will be about 100,000 cars driving around in the Netherlands with a private lease contract. Competition is fierce, so monthly prices are competitive. But appearances can be deceptive. Add up what you pay in total over a period of three or four years.

What are the benefits of private leasing?

With private lease you drive around in a new car, without paying the purchase price of tens of thousands of euros. After the purchase, you immediately write off thousands of euros. With a private lease you don't have to worry about that. You pay no maintenance costs, road tax and car insurance. You also benefit from the energy efficiency of modern cars. If you add these amounts together, the savings are large, but they are also offset by high costs.

The popularity can be explained. Enjoying the luxury of driving new and not owing hundreds or thousands of dollars at once in the event of a repair. Don't forget the convenience, either. The disadvantages are:

• Over a period of usually three or four years, you take on heavy monthly expenses. Attractive starting prices are often advertised, but at the end of the day the fixed costs add up to tens of euros per month. If you have few claim-free years and you drive many miles per year, the monthly costs will be a lot higher.
• Will you still be able to bear the monthly expenses next year? Changes in your personal situation can make your monthly expenses unaffordable. For example, you lose your job or become disabled. A divorce can also make private leasing unaffordable.
• In case of damage, you often still pay a deductible. For an extra monthly fee, you can buy it off in some cases, but that in turn causes higher monthly costs.
• You do not become the owner of the car. At the end of the lease period, you return the car.

Assuming a lease amount of €399 per month, over a period of 4 years you will pay a total of: €19,152.

Still go for a good used car?

With older cars, you are more likely to incur high maintenance costs. Instead of private lease, you can also choose to buy a young used car. On a three-year old car, the biggest depreciation has already been done and you can drive the car for years at low cost. Of course, you could be unlucky enough to buy a car for which you have to spend a lot on maintenance, but compared to the high cost of private lease, you can take your chances.

Read also:

Prepaid car insurance is often too expensive

Private lease - What happens to the accumulated claim-free years?

The disadvantages of private lease

Claim or pay for car damage yourself?