Lease Vs Buy Car In The Netherlands
Having a new car in the Netherlands? Or leasing a new car? Which is more advantageous? Unfortunately, these questions do not have an appropriate answer for everyone. However, both options have both advantages and disadvantages.
At first glance, most people think that buying is always the best option, but for the Netherlands, this may vary according to your preferences. Let's take a deeper look.
When I first came here, I saw that the Dutch perceived car purchasing as a luxury expense. Both the costs of vehicle maintenance and the high taxes confirmed this. Netherlands, which is an environmentally friendly country, has high vehicle taxes compared to many other European countries. However, if you come from a different culture and a different lifestyle, the importance of the car in your life is higher than many Dutch people.
For similar reasons, I started researching to have a car as soon as I arrived. First of all, I realized that car prices are 10-20% higher than in Germany. I have decided that it is not very attractive to purchase under these conditions.
Another alternative was long-term rental. There are two types of leasing options in the system here, individual leasing and commercial leasing. Both had their own advantages and disadvantages. First of all, commercial leasing made an institutional structure mandatory, it was extra cost to use for your private trips, but you could get a tax refund and monthly prices were more suitable than individual rentals. Individual leasing also saved you from all other paperwork, so to offer an all-inclusive package. My company made commercial leasing possible for its employees under certain conditions, and I continued on commercial leasing.
To make a logical comparison in the selection of cars, I set the following criteria for myself.
- How many kilometers will I be driving per year?
- Short distance / city car or long distance / vacation car or both?
- How often do I change my car?
- How much is my budget?
Let me briefly try to explain the logic behind the questions.
How many kilometers will I be driving per year?
- One of the most basic questions. The most important criterion that directly affects the monthly rental amount and will be used to compare with the purchase. If you are doing many kilometers, your vehicle will lose the same value and maintenance costs will increase
Short distance / city car or long distance / vacation car or both?
- For a short distance, you need a compact, fuel-friendly vehicle that is comfortable to use in the city and easy parking.
- Comfort and safety are important when it comes to long distances, but it is still reasonable to choose a slightly lower budget for vacation.
- If you are looking for 'cars' that serve both purposes like me, choose middle class cars.
How often do I change my car?
- This depreciation value is highly associated with your appetite to change the car, for me it is a minimum of 3 years and a maximum of 5 years.
How much is my budget? New car or second hand?
- This is also very important because it defines the fine line between rental and purchase. The depreciation of second-hand vehicles is lower, but the risk of deterioration is higher.
The values I base on my calculations;
15000 km per year, 5 years, middle class, hybrid, 25k, (bonus) 150 hp
In line with these criteria, I made the following calculations and decided to go for the rental option;
|Road Tax Motorlu Taşıtlar Vergisi||60||80|
|Maintenance Bakım Giderleri||40||80|
|Tires ( 1 set per 3 yrs) Lastik||10||20|
|New car Depreciation %40 @ 3 years Araç Değer Kaybı||Car value(25k) * 0.4 / 36 = 250||320|
|Surprise elements (1k-1.5k in total over 3 year) Plansız Masraflar||30||40|
|Total (for 3 year)||450 * 36 = 16.2k||630 *36 = 22.6k|
Let me summarize the table in words; If you pay a rental price in the range of 450-660 Euro per month, it will be more advantageous to rent the car for a long time. For a more affordable tool, the table will be shaped much differently, I would like to mention again.
I used my preference for renting a car for a long time.