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What are the disadvantages of private leasing?

Driving a new car with a private lease. It sounds fantastic and carefree, but it is not cheap. You have no more maintenance costs, depreciation, tax and insurance premiums, but that does not mean that you are cheap with private lease. There are also a number of major disadvantages.

Buying a new car requires a large amount of money at once. After the purchase, you also have to make reservations for the next car. This is called depreciation. As the owner of the car, you also have to pay an amount to the tax authorities and an insurer. With a new car you have few maintenance costs, but you will incur costs. Leasing companies say they have the solution. One fixed amount in the form of private lease. It is an option, but bear in mind the disadvantages.

They are often long-term contracts

With private leases, you can choose between different durations. These are often contracts from one to four years. Circumstances may make it necessary to break off a lease contract prematurely. This is, for example, the case with a drop in income due to incapacity for work or unemployment. The consequences of breaking off the contract differ per provider. It is often not clear from the terms and conditions. When entering into a lease contract, you must assume that you will also have to finish the contract. The penalty amounts can be substantial.

Private lease and the mortgage

Did you know that private lease can make buying a house impossible? When applying for a mortgage, your fixed costs are taken into account. With private lease you have temporary high monthly costs. It does not matter that these are temporary charges. It may be necessary to buy the private lease at once, in order to make a mortgage possible.

Disadvantages of private leasing

Attractive prices from

At first glance, it often seems attractive, but when setting the requirements, the monthly costs rise sharply. This is because prices are used from the start. For example, you can only drive 1,000 kilometres per month with the car. Do you want to drive more? Then the monthly amount will be increased or you will be charged an extra amount of, for example, €0.10 per kilometre.

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What happens in case of damage?

When concluding a contract, pay close attention to the arrangement in the event of damage. How much excess will you be charged? The excess amount in case of damage varies per provider. Also pay close attention to the other conditions in the contract. After all, once you have signed it, you are stuck with it.

Buy second-hand and get cheap insurance

With private lease, you pay extra for the comfort of a new car. You can save money by investing in a young car of a few years old. The maintenance costs of young cars are often not as high and the depreciation is also much less compared to a new car. You can save a lot on insurance by comparing insurers. An additional advantage is that the car belongs to you. When you sell the car, you also get a part of the investment back.

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