Is private leasing for you?

6 min to readYour lease car: tips & tricks
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.
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1. Purchase cost

Whereas a consumer buys one car, leasing companies buy hundreds at a time. That brings huge economies of scale—out of reach for private buyers, no matter how good your negotiation skills are.

2. Insurance

When a leasing company takes out car insurance, it does so for hundreds of cars at a time, and therefore at a much lower insurance premium. LeasePlan even has its own insurance branch within the company. These savings are then passed on to the drivers.

3. Maintenance

Leasing companies have national networks in place with maintenance and repair vendors. Due to the high numbers of cars are significant, they can negotiate rates and make agreements with these vendors to ensure drivers have access to the best service and repairs 24/7 at sharper rates.

4. Repairs

When you own a car, you pay for repairs and maintenance as they happen. Often these costs end up higher than you had hoped. Leasing companies use their experience in the leasing market to estimate the chance of repairs and maintenance accurately and subsequently negotiate lower reparation rates from their.

5. Resale value

When a leasing contract comes to an end, the car has to be sold. This is another area where a leasing company is in a much better position than a private car owner. LeasePlan even has a resale organisation - CarNext - that resells lease cars in bulk. This is a much more efficient system than selling your old car online or through a car dealership.

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:

Private lease 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!

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 and 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.

Conclusion

Leasing a car privately is often cheaper than buying a new car, even when you buy a second-hand car. And yes, a leasing company wants to make a profit too. But as long as it saves you money and hassle, a private lease is a great way to drive a brand new car without using up your savings or taking out a big loan.

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Published at November 18, 2020

More about Private lease
November 18, 2020
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