Private lease, pros and cons

Private lease is a form of car rental where you rent a car for a predetermined period for a fixed monthly fee. With private lease, all costs for the car are included, such as road tax, motor vehicle tax, maintenance, repairs and insurance. So you don't have to save for a down payment or pay for unexpected costs yourself.

Advantages of private leasing

There are many advantages to private leasing. You always have a new car, you don't have to worry about maintenance and repairs, and you know exactly where you stand. Private lease is also a good option for people who don't drive many miles, because you only pay for the kilometres you actually drive.

Are there any drawbacks?

However, there are also some drawbacks to private leasing. The monthly amount is often higher than the monthly cost of car insurance and maintenance contract. Moreover, you are tied to a certain duration, and if you want to terminate the lease in the interim, you often have to pay a penalty.

How is the monthly amount of private lease determined?

There are a number of factors that determine the monthly amount with private leasing. These factors are:

• The purchase price of the car: The purchase price of the car is the most important factor determining the amount of the monthly amount. The more expensive the car, the higher the monthly amount.
• The term of the lease: The term of the lease contract also affects the monthly amount. The longer the term, the lower the monthly amount.
• Mileage per year: The number of kilometres you drive per year also affects the monthly amount. The more kilometres you drive, the higher the monthly amount.
• Insurance premium: The insurance premium is another factor that determines the monthly amount. The insurance premium depends on the car, the driver's driving experience and where the driver lives.
• Road tax: Road tax is an annual tax you have to pay for using your car. The amount of road tax depends on the car and the province where you live.
• Maintenance and repair costs: Maintenance and repair costs are not included in the monthly amount, but may be a factor when calculating the monthly amount. The amount of maintenance and repair costs depends on the car and the driver's driving habits.
• Fuel costs: Fuel costs are not included in the monthly amount, but may be a factor when calculating the monthly amount. The fuel cost depends on the car, the driver's driving style and fuel prices.
• The down payment: A down payment is not mandatory with private leasing, but it can be a factor in calculating the monthly amount. A down payment reduces the monthly amount, but you have to repay the down payment at the end of the lease contract.

It is important to carefully consider all the factors that determine the amount of the monthly payment before signing a private lease.

What is the difference with financial leasing?

Private lease is different from financial lease. With private lease, you rent the car, while with financial lease, you buy the car. With financial lease, you pay a monthly amount in principal and interest. At the end of the term, you can take over the car, but you can also return it to the leasing company.

Conclusion private lease

In general, private lease is a good option for people who do not want to buy a car, but want to enjoy the benefits of a new car. It is important to carefully compare the pros and cons of private lease with the alternatives, such as buying a car or renting a car.

Are you convinced and want to move forward with private lease then there are several parties who can advise you (online). Here are some tips for choosing a private lease:

• Compare different leasing companies and rates.
• Choose a car that suits your budget and driving habits.
• Make sure the contract is clear and transparent.
• Read the small print carefully.
• Test drive the car before signing a contract.