Car leasing in Netherlands is an option for expats who desire the flexibility and convenience of having a vehicle, but do not want the hassle involved with shipping a car from back home to Holland.
Leasing a car is similar to a long-term rental. The vehicle is yours for a specific period of time (typically 48-60 months) for which you pay a set monthly fee. The contract agreement stipulates the distance (in miles or kilometers) allotted for the vehicle to be driven over the course of the lease. The amount is typically stated as a per year amount, but it is the total amount that matters. For example, a 4-year lease with 12,000 km/ year allotment means the leaser can drive 48,000 km over the four years with no additional charge. If, however, the odometer shows 52,000 km at the time of turn-in, a fee will be charged for the 4,000 extra kilometers driven.
The monthly payment installments associated with an auto lease covers such factors as vehicle depreciation, scheduled maintenance (oil changes, new wiper blades, tire rotation, A/C service), insurance and APK testing when required.
There are positive and negative aspects to leasing a car (rather than buying one) and these are no different in the Netherlands as they are in other countries…
Advantages of Car Leasing in Netherlands
- Lower monthly expense (vs loan cost to purchase the same vehicle)
- Lower operating costs (a lease agreement covers most operating expenses except fuel)
- No insurance costs (a lease agreement includes insurance on the vehicle)
- No disposal burden (vehicle is returned at end of lease term)
Drawbacks of Car Leasing in Netherlands
- Potential to owe a large sum of money at end of lease if the vehicle has been driven significantly more kilometers than the amount allotted in the contract
- No equity build up in the vehicle over the course of the lease
- Little flexibility with ending a lease early (typically involves paying a large penalty fee)
What’s Covered in a Dutch Lease Agreement?
Car leasing agreements in the Netherlands include the cost of road tax, maintenance, repairs, APK, vehicle insurance, breakdown assistance and a replacement vehicle if needed.
Contract Length
The standard length of a new car lease in Netherlands is typically 48 or 60 months (4 or 5 years). The length of a secondhand car lease is commonly 24 or 36 months (2 or 3 years). A longer lease typically translates into lower monthly payments.
Expats and internationals in the Netherlands may be hesitant to commit to a long-term car lease if their employment contract is only a couple of years or the length of their stay is uncertain. A short lease may meet their particular needs better. Over the past few years, a number of companies have begun to offer car lease terms of 24 months or less. These include…
An expat who already has a longer contract car lease and finds they must leave the Netherlands sooner than expected, will want to get rid of their leased car. Most Dutch car lease companies will allow the contract to be terminated by paying a fee based on remaining time.
An alternative to a forced car lease termination is to have someone take over the existing lease agreement. This requires approval from the leasing company. The available car lease can than be advertised on platforms such as PrivateLeaseOvernemen which is specifically targeted to potential leasees interested in taking over an existing car lease contract.
Dutch Car Leasing Trustmark
The Netherlands has an established trustmark specific to the vehicle leasing industry. ‘Keurmerk Private Lease‘ is a blue and white logo that expats should look for on a car lease website. The logo indicates a company complies with standards set by the trustmark association in collaboration with the Dutch consumer protection agency. Car leasing in Netherlands standards include:
- 14-day cooling off period
- transparency of all costs associated with the lease contract
- inclusion of all elements listed above
- quick resolution of customer disputes by an independent committee
Car Leasing in Netherlands Statistics
Private car leasing in Netherlands has been growing quickly over the past several years. According to the VNA (Association of Dutch Vehicle Leasing Companies), private leases totaled 231,000 in 2021 (a four-fold increase over 2016).
Nearly 25% of business passenger car leases in Netherlands are electric vehicles.
Related information…
BUYING A CAR IN NETHERLANDS
