Car Leasing in Netherlands | ExpatINFO Holland (2024)
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…
If an expat has a long contract leased car and finds out they must leave the Netherlands sooner than expected due to change in employment, they need to deal with the vehicle. Most Dutch car lease companies allow the contract to be terminated but will charge a penalty fee based on remaining time.
An alternative to forced termination of a car lease is to have someone take over the existing lease agreement. The leasing company must give their approval for such a change. Once approval is granted, the remaining car lease can be advertised on platforms such as PrivateLeaseOvernemen which is specifically targeted to drivers 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.
The main types of car lease in the Netherlands are business lease and private lease. If you are self-employed or own a business, you may want to look into a business lease, as you may be able to make use of some convenient tax benefits.
A leased car is not part of your business assets, but the costs are chargeable to your business. You may offset the costs against your revenue, on condition that you take account of private use of the car. You may also deduct the VAT charged to you by the leasing company.
In 2016, 2017, 2018, 2021 and 2022, ALD Automotive was crowned the best leasing company in the Netherlands. In 2019, ALD Automotive won the Fleet Europe Innovation Award. With more than 7,050 employees worldwide, ALD Automotive manages 1.76 million vehicles (end of September 2022).
In the year 2021, the leasing market held up well, with €6.9 billion worth of leasing contracts concluded with a total of over 72,000 companies, an increase of 4% year-on-year. The lessees are mainly SMEs, nearly 70%, although large companies in particular recorded a growth of 32%.
The Netherlands is the most expensive country in Europe to drive a car, according to the new CarCost Index of car leasing and fleet management company LeasePlan.
You can buy a car as an expat with a foreign driving licence
If you come from outside the EU/EEA, you will first have to pass both the Dutch theory and practical driving test before you can apply for a Dutch driving licence. Replacing your driving licence usually takes a week or more.
For a private lease contract you need a Dutch passport and a Dutch driver's license. This is a rule for most major private lease. But if you're an expat, you obviously don't have one. There are operators who accept a foreign driving licence, but this must be recognised in the Netherlands.
However, the rental agreement will only end if the tenant agrees to this termination in writing. If consent is not forthcoming, the landlord will have to start legal proceedings to convince the court of the presence of valid grounds for termination of a rental agreement under Dutch law.
Calculating the addition for the private use of a car
The addition is, in general, at least 22% of the tax basis for cars with a date of first registration of 1 January 2017 or later and at least 25% for cars with a date of first registration before 1 January 2017. The addition is 35% for cars older than 15 years.
Every year, 600 fleet managers assess their lease companies on various aspects of their service provision. Both ALD Automotive and Arval (which has to share top position for the first time in ten years) received a figure of 7.9.
A major factor behind these rocketing prices has been the introduction of stricter ruling on the points-based system which governs the Dutch housing sector. The Dutch rental sector is split between regulated “social” housing and the privatised “free” market.
In recent years, the housing market has become increasingly tight and it is becoming increasingly difficult for tenants to find a home. This applies to both the social and free sectors. To qualify for social housing, one must have been registered for 5 to 10 years.
With ALD Automotive Private Lease, the contract includes insurance, taxes and maintenance for your vehicle. You only pay for fuel and any traffic fines you may incur. As a result, you pay less than you would when purchasing a car yourself.
Most rental contracts offered as a fixed-period rental contract are, by law, considered indefinite rental contracts with a minimum fixed term. This means that you cannot terminate your contract until the minimum fixed term has lapsed. Often this minimum fixed term will be six to twelve months.
A Dutch mortgage has tangible financial advantages
If you buy a home and get a mortgage, you are entitled to a tax break derived by deducting your mortgage interest from your taxable income. In the Netherlands, mortgage interest rates are currently meagre, and in 2021 reached a historically low of 1.23%.
When you compare the expense of a car lease to a long-term auto rental in Europe, a lease can help save money over renting a car in Europe. Learn more about our leasing partners today.
Yes, a foreigner can buy a car in the Netherlands. You can even put a car in your name with a foreign driving licence. You will need to have one of the following legal documents, however: ID or driving licence from an EU or EVA country.
Car leasing in Europe (sometimes called a buy-back rental) is the ideal car rental plan for your vacation in the EU! Simple and worry-free, this plan allows you to drive a brand-new, factory-fresh car and pay only for the length of the lease.
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