Are you dreaming of a new car, or do you simply need a new car that works properly in the short term? Then you are facing expensive times ahead. How will you finance your new car? To help you make this choice, we will discuss several options. Each method of financing has advantages and disadvantages. And besides, in almost all cases there are costs associated with borrowing and leasing. On the other hand, with today's negative interest rates, saving can also cost money.
Savings
Of course, saving is one of the best ways to finance a new car. This means you spend money that you actually have. But it does mean you have to be patient. To be able to buy your dream car, there is little wrong with being patient and saving up, but if you need a new car at short notice, it is not a matter of patience but necessity. That is why we have described some alternatives below. This will save you from having to save up to buy a new or used car.
Paying off or borrowing money
Paying for a new or used car directly from the dealer is not necessarily the only way to finance it these days. At many dealers it is possible to buy a car on credit. Be aware that in doing so you are actually taking out a loan and that borrowing money costs money. Even if you are aware of this, it is still important to make a good consideration. Often you have no choice in the conditions of the loan. Often it can cheaper are to take out a personal loan themselves with the lender. These parties often have the most favourable conditions and the lowest interest rate, so it is worth considering.
Financial lease
Financial lease is a form of lease where you become the owner of the car yourself. You pay off the car through your monthly lease payment. Various constructions are possible when it comes to financial leasing, in most cases there is a final instalment. Because the car becomes yours, there is often no limit to the number of kilometres you can drive it annually. However, you are also responsible for things like insurance, maintenance, repairs and motor vehicle tax. With private leasing, these responsibilities are not yours.
Advantages of financial leasing
- You can write off for tax purposes
- You are entitled to the investment deduction
- You are immediate economic owner of the car
- No mileage limitation
Private lease
Another way to be able to drive your desired car is private leasing. This is similar to leasing as business drivers often do. With private lease, you are no You are the owner of the car and do not buy it. However, you will be completely relieved of all worries because matters such as vehicle tax, insurance, maintenance and repairs are the responsibility of the leasing company and are included in the monthly fee you pay. The fuel costs, however, are at your own expense in the case of private leasing. You only have to agree with the lease company on a maximum number of kilometres you can drive with the car per year. As the number of kilometres increases, the monthly fee will increase. When you choose this type of lease, it is wise to think carefully about the number of kilometres you drive per year. If in practice you drive more than is allowed in the contract, the extra costs per kilometre will be substantial.
Operational lease
At Operational Lease you drive a business car for a fixed all-in monthly fee. So it's like renting. Thanks to the all-in monthly fee, you have arranged car insurance, road tax and maintenance in one go. The car remains the property of the lease company and you return it at the end.
Advantages of operational leasing
- You run no economic risk because the car remains the property of the leasing company.
- Healthy for the company's balance sheet: no impact on your company's solvency, liquidity and working capital.
- All costs are included: repairs, car insurance, depreciation, maintenance, interest and road tax.
Difference between financial and operational lease?
The biggest difference between operational lease and Financial Lease is in ownership. With operational lease, your business car remains the property of the leasing company. With the monthly amount, you pay for the use of the car and additional services. Do you opt for Financial Lease? Then you do become owner of the car at the end of the lease term. So you pay off the car each month.
Example: business financing at Seat
Are you looking for a business car with unexpected comfort, looks and sporty handling? Then take a look at SEAT's business cars. From spacious SUVs to sporty hatchbacks. Available with business operating lease and financial lease. Check out the models now and discover the attractive lease rates.
The above options cost money, but of course you get something in return. Besides, many of us cannot live without a car. So you can consider it a necessary expense.
EN 
NL 
DE