July 23, 2020

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:

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!

Insurance

We arrange the insurance - and not just for you. Your vehicle is insured for anyone to drive. The monthly fee includes full comprehensive insurance which extends to glass and all other types of damage repairs.

Free Replacement Car

If your car is in the garage for maintenance or repairs, you are eligible for free replacement car.

Roadside assistance

Has your car broken down or is there a technical problem? No worries! The monthly fee includes national roadside assistance via an emergency contact number.

Fines and SALIK charges

No need to worry about paying your traffic fines and SALIK charges directly to authorities. We do that for you and pass the charges on to you in the next billing cycle.

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.

Customised contract duration

You can customise the duration of your contract to suit your needs, ranging from 12 to 48 months.

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

  • No unforeseen extra costs: maintenance and repairs are included
  • Fine and SALIK charges managed on your behalf
  • No initial outlay to purchase the vehicle, allowing you to spend your savings on something else
  • A choice of mileage bundles and contract duration( from 12 months to 48 months).
  • Cancel in the event of unforeseen life changes e.g. involuntary redundancy

Cons of private lease

  • When you sell the car you won't receive any money from the sale
  • You can't exchange your vehicle whenever you want
  • If you would like to terminate your contract early or change it, there can be extra fees involved.

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