What is private lease?
Private lease is a carefree package that relieves you of the burden of owning a car. You pay a pre-agreed monthly rental fee for the use of a brand-new vehicle based on your expected mileage and the duration of your contract. Private lease gives you the opportunity to drive your ideal car – one that suits your situation. Whether you are looking for a spacious car or a compact city car, and whether you want to go on road trips or just run errands, we always have a car that meets your mobility needs.
You could see leasing as a kind of monthly subscription, in which we take care of things like insurance and maintenance costs for you. Pretty much the only costs that are not covered by the monthly fee are fuel, traffic fines and the car wash! A private lease contract typically includes the following services:
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Repairs, maintenance and tyres
In the event of wear and tear, it is easy to arrange maintenance, repairs and tyre replacement at the LeasePlan partner garage in your area. We pay the costs!
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Insurance
We arrange the insurance – and not just for you. Your vehicle is insured for anyone to drive. The monthly fee includes standard occupant damage insurance, third-party insurance and Casco cover which extends to glass and all other types of damage repairs.
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Free replacement transport
If your car is in the garage for maintenance or repairs for more than 72 hours, you are eligible for free replacement transport.
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Roadside assistance
Has your car broken down or is there a technical problem? No worries! The monthly fee includes national and international roadside assistance via an emergency contact number.
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Road tax
No need to worry about road tax (otherwise known as ‘motor vehicle tax’) – we’ve got it covered!
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Unforeseen events
If your personal situation changes during the agreed term, you can contact us to discuss the options. Contract duration and mileage can be easily adjusted to your new situation. In certain circumstances (such as involuntary redundancy), the private lease agreement can be terminated early.
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Customised contract duration
You can customise the duration of your contract to suit your needs, ranging from 12 to 60 months.
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Choice of mileage bundles
Based on the amount of driving you expect to do per year, you can choose from several mileage bundles as the basis for your monthly private lease fee.
Private lease: the pros and cons at a glance
The key advantage of private lease can be summed up as security and peace of mind. Thanks to the fixed monthly amount, you know exactly where you stand:
| Pros of private lease |
Cons of private lease |
| No unforeseen extra costs: maintenance and repairs are included |
When you sell the car you won't receive any money from the sale |
| Road tax and insurance are included, for all drivers and occupants |
You can't exchange your vehicle whenever you want |
| No initial outlay to purchase the vehicle, allowing you to spend your savings on something else |
If you would like to terminate your contract early or change it, there can be extra fees involved (no charges for unforeseen events) |
| A choice of mileage bundles and contract duration( from 12 months to 60 months). |
| Cancel free of charge in the event of unforeseen life changes e.g. involuntary redundancy |
Private leasing vs buying
Want to know the differences between leasing your next car or buying it? We can help with that. Read our blog on the five most important aspects of leasing vs buying your next car.
Private Leasing Vs Buying
Looking for a new car? Now's the time to give private leasing some serious thought! It offers you all the benefits of owning a car without having to dip into your savings or get a loan. You pay a monthly fee, which includes all costs (insurance, maintenance etc.) except fuel. And, while you focus on driving, LeasePlan takes care of everything else.
Still in doubt? In this blog we compare private lease with buying to help you decide what’s next for you!
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Buying |
Private leasing |
| 1. Financing |
Fund your car yourself with savings or a loan. And, don’t forget running costs! You will be responsible for insurance, road-side assistance, tax and any out of warranty repairs. |
You pay a fixed monthly fee that covers most of these costs. We take care of everything, except fuel and any insurance deductibles in case of an accident. |
| 2. Maintenance & repairs |
Repairs & maintenance costs are your responsibility. That includes drop-off, pick-up and arranging a replacement transport if your car needs to go to a garage. |
This is covered in your monthly fee and we take care of everything to do with maintenance and repairs, including accident management and insurance. Just call and we’ll get you back on the road asap. |
| 3. Mileage |
There are no restrictions on how much you drive or little you want to drive. But remember, the more you drive the less your car will be worth when you sell or trade it in. |
You decide how much you expect to drive each year at the start of your contract. There may be extra charges if you go over the mileage limit, as the more you drive the less the car is worth once you return the keys. |
| 4. Commitment |
When you buy a car, it’s yours to keep, sell or trade-in whenever you like. The only commitment you have is paying off any loans that helped finance the car. |
With leasing, you commit to the duration of your lease, monthly costs and your mileage allowance at the start of your lease contract. Need to end the contract early? You can, but there will be an early termination fee. This fee is to compensate the risks and costs calculated earlier in your lease rate. |
| 5. What's next? |
When you own a vehicle, you can drive it for as long as you like. Want to sell? Selling your vehicle is your own responsibility and the cash left after you sell goes to you. Keep in mind the car will depreciate in value a lot in the first year and maintenance and repair costs will go up as the car gets older. |
Has your private lease contract expired? Simply hand back the car and select your next brand new vehicle |
There you have it: 5 key things to know about leasing vs buying a car. Has this helped you decide what’s next for you? Feel free to get in touch with the LeasePlan team with any questions you may have or visit our website.