A new car every four years?

It's possible with Private Lease!

January 18, 2021

For most people, a car is still a significant investment. Some use a substantial amount of their savings, while others even take out a bank loan. Balloon loans have also become very popular recently. However, there's another option that's often overlooked: private leasing. With private leasing, you pay a monthly fee for your car, just like you pay for other services like Netflix or Spotify. This also means that you get to choose a new car every three to five years.

Car leasing is almost always associated with company cars, but private individuals can also sign lease contracts. You can compare this with a loan from the bank, with the difference being that you won't own the car at the end of the payment period. In exchange, private leasing payments also include the main cost of ownership. This means you know exactly how much the car will cost you for the entire period, without any unpleasant surprises.

Pay per use

Unfortunately there'll be no Brussels Motor Show this year, but that won't stop most car manufacturers from offering us some very attractive motor show special offers. Still, we mustn't be misled by the price we see at a dealership or in a brochure. While it's true that paying that amount will make you the official owner of the car, the payments won't stop there. The costs of the car's maintenance, tyre wear, insurance, taxes and so on will accumulate over the years. All these factors are closely linked to the car's use.

On top of that, you also have to consider the car's value loss. The value of your purchase will plummet, particularly during the first year. If you decide to sell the car after a few years, you'll only get a fraction of what you paid for it yourself. Of course, the loss of value also depends on the model – a car with an outdated engine won't be worth much after a few years. And still we rarely think of the potential value loss when we buy a car.

You don't have to worry about any of this if you opt for private leasing. The lease price also includes the operating costs and takes the value loss into account. Leasing evens out the car's additional costs. Each contract is based on the kilometres the driver expects to cover each year. And it's not a problem if you end up driving more or fewer kilometres, either, as the contracts are reviewed after one year in a simple process to settle the difference and adjust the expected cost of ownership for the following year.

 

Always a new car

Nothing beats the smell of a new car. Private leasing always gives you that feeling of driving a brand-new car. Every four or five years, the leasing company will sell the car and invite you to choose a different model. Nowadays, cars are changing rapidly. The tech under the bonnet is always improving, and this year's latest developments may well be outdated at the 2022 Brussels Motor Show.

Private leasing opens the door to models whose purchase price are slightly over your budget. Of course, LeasePlan always looks at the options that match their customers' budgets in order to present several suggestions. However, most leasing cars are purchased in bulk, so car manufacturers often give leasing companies extra discounts that car dealerships would never be able to offer. That discount is reflected in your monthly price, which may make it more feasible for you to drive your dream car.

The final aspect – taxation – is also more complex than ever. Thanks to private leasing, you'll never have to worry about any tax developments. And because you get to choose a new car regularly, you can always respond to such developments quickly.

Interested? Be sure to check out our tips and promotions before tackling all those motor show special offers.  You'll currently receive a free fuel card worth €250 when you take out a private leasing contract!

FREE FUEL PROMOTION