When you are planning to get a new car, you have several options. The traditional route is to buy a car yourself, but not everyone has the money for it and will have to borrow. That costs money. Private lease is therefore a good solution if you cannot or do not want to buy, but do want to have a new car in the driveway. But which is now more advantageous? Here you will find some calculation examples for private lease.
That depends entirely on your situation. With private leasing of a car, your monthly costs can be lower than if you own a car yourself. That is not always the case. The reason that private lease can offer competitive rates mainly has to do with economies of scale: leasing companies can buy cars and insurance (and other things) on a large scale at prices that you as an individual cannot get. The attraction of private lease is that for a fixed monthly amount you are actually done with the costs. You really only have to think about fuel and parking.
Own car: all costs
It is different with your own car. Apart from the purchase price, you will have to pay all fixed and variable costs yourself. This means paying for road tax and insurance, but also for maintenance and any breakdown assistance. And of course the fuel. You also have to take into account the depreciation of your car. If you do not have enough money of your own and you have to borrow, you will also have to deal with an interest amount.
Financial conditions private lease
Of course, private lease is not all roses and moonshine. In contrast to your own car, you can’t just get rid of your lease car: premature termination of a contract can cost hundreds to thousands of euros. When a lease contract is concluded, 65 percent of the total amount is registered with the Credit Registration Office. This has consequences for your borrowing capacity. If you do not have a mortgage yet, but do want to take out one, you will be able to borrow less money from the bank.
As mentioned, it depends on your situation what the cheapest option is, but your choices also affect the amount. For example, a short term and many kilometers both result in higher monthly rates for private leases. The car model you have in mind also determines the price. Below you will find a few calculation examples for private lease.
Example 1: cheap car
In this example, we assume a 27-year-old motorist with no claim-free years who wants to take a Kia Picanto, but cannot afford the full amount of roughly 14,000 euros himself. With a private lease you can drive a Picanto for 219 euros per month. You can then travel 10,000 kilometers per year for 4 years. If you buy the same Picanto with borrowed money and take the same variables into account, you will pay an estimated 250 euros per month.
Example 2: more expensive car
Suppose you want to buy a new Volkswagen T-Roc. The new price of the entry-level version of this car is around 30,000 euros. If you drive 15,000 kilometers per year for 5 years and pay for the car with your own money, you are looking at monthly costs of around 450 euros. If you are looking for a private lease contract with the same conditions, you will arrive at a monthly rate of roughly 399 euros. In this case too, private lease would therefore be slightly cheaper.
Calculate your own situation
Do you want to get started yourself? See what you spend per month on:
- Depreciation
- MRB/motor vehicle tax
- Insurance
- Maintenance (including tires)
And then look up the car of your choice (or your current car) in Autoweek’s Private Lease Comparer to calculate the lease amount. How do you get yourself out then?
– Thanks for information from Autoweek.nl