Moving to the Netherlands can be a stressful affair: from finding housing to finding a job, there’s a lot to organise. Luckily for you, though, there’s one aspect of this whole process that can be simplified: getting yourself a car.
You might have thought— as we once did— that the only way to get a car for a longer period was to, well, buy one. But actually, there’s another way: and one that is really suitable for life as an international in the Netherlands; (private) leasing a car. Yes, it’s a grown-up thing, and yes, it’s complex at times but also very advantageous for some of you reading this. So we’ve partnered up with Bynco to tell you all about getting a private lease for a car as an expat in the Netherlands.
Bynco is a Dutchcompanywhich sells and leases cars online: the name Bynco stands for “Buy Your Next Car Online”. We’ve worked with them on this article to take advantage of their knowledge of private leasing, which is the perfect option if you’re an expat coming to the Netherlands. They also, of course, sell cars,and you can browse through their selection of those here.
First of all, what is a private lease?
A private lease allows you to rent a car for a particular period of time. Most leases will be for a number of years, but there are shorter leases available. You can choose between a new car or a used car, and the amount you pay each month will depend on that, as well as the type of car you choose.
Another massive advantage of a private lease is that all monthly costs, except for fuel, are covered under the monthly fee you pay to the company you lease the car from. That includesthe car itself, road tax, liability insurance, accident insurance for occupants (optional), legal assistance, body damage, maintenance, repairs, tires, breakdown assistance, the car sharing module, replacement transport after 72 hours and the possibility of cancellation without penalty in the event of divorce, death or dismissal from work.
And finally, importantly for expats who might want to return home at some point, you can just give the car back to the lease company at the end of your lease: no worries about selling it on when you want to move away from the Netherlands.
Why is a private lease for cars especially suited to expats?
When you move away again from the Netherlands, you would usually have to figure out what to do with your car. With a private lease, that’s not something you need to worry about. You can give your car back to Bynco when you want to move away, no hassle required. Overall, sometimes it can work out to be cheaper to take a private lease instead of buying a car, depending on your personal situation.
How do you lease a car? What are the requirements for a private lease?
Ok, so we’ve convinced you. Welcome to the grown-up club! The next step is figuring out how you can lease a car in the Netherlands. There are some requirements that you’ll need to meet: after all, you are being entrusted with a pretty valuable object. Bynco asks for the following requirements to be met by its customers:
You must be 21 years or older.
You need to be living and registered in the Netherlands,
You need a Dutch bank account.
You don’t have a negative BKR registration (the BKR is the Dutch organisation that keeps track of your history with debt- quite like a credit score).
You need to be able to pass the income burden test. That means you need:
An employment contract, or a letter of intent from your employer, or
Another form of a fixed monthly income, which you can prove, and
Most companies that lease cars will require you to have a Dutch residence address, a valid passport/ID, and a driving licence that is recognised by the Netherlands. You’ll also need a permanent or temporary employment contract. A lot of car lease companies will require a Dutch driver’s licence, but as an expat, that’s not something you will have. For the companies, including Bynco, who don’t have this requirement, you still need to get your driver’s licence recognised by the Dutch authorities.
Getting your driver’s licence recognised in the Netherlands
If you’re from the EU, then this is a simple process: your EU driver’s licence is valid in the Netherlands for as long as it is validin your home country,with a 15-year limit on this.
If you’re from outside the EU, you can use your old driver’s licence for six months in the Netherlands. During this time period you should apply for a Dutch driving licence. If you wait longer than that, you’ll need to do a Dutch driving test- which honestly, we would wish upon no one. You might also be able to apply for an International Driver’s Licence, which some car leasing companies will accept instead of a Dutch driver’s licence.
The benefits of leasing a car with Bynco
Now, we teamed up with Bynco to write this article for a reason. They offer a truly premium service, which makes the entire process of leasing a car much easier. First of all, they’re open 7 days a week, which is super handy if you work full time during the week, for example. They also offer you a 14 day reflection period, so if you choose a car and realise it doesn’t work for you, you can just exchange it within two weeks. That ensures that you’re really going to be leasing a car you’re happy with.
There is also flexibility when it comes to switching between cars and bundles. When you first lease a car with Bynco, you might not be fully sure how much you’ll use the car, especially if you’ve just moved to a new country. There are several tiers with Bynco, each of which give a particular allowance for the number of kilometres you can drive without incurring extra costs. If you realise you’re driving more than you expected, you can just switch up to the next tier. Similarly, if you’re driving less than expected, you can switch down.
The same idea applies when your private lease comes to an end.So, when you lease a car, the lessor estimates the number of kilometres you will probably drive with the car, and the depreciation that causes is included in your monthly payment. But maybe you’ve driven the car way less than that, so the car is actually in better condition than the car lease company expected. In that case, you can actually get money back from Bynco at the end of the lease, if you don’t want to change your monthly bundle along the way.
Bynco also doesn’t require a deposit on the car you lease, which is great for those of us who don’t have a whole chunk of money chilling in our bank accounts. Furthermore, they have the Quality Mark for Private Leasing (in Dutch: Keurmerk Private Lease – yes, we know, Dutch is wild).
What’s the difference between leasing a car and buying one?
So, let’s get into the nitty gritty. What are the main differences between leasing a car and buying one? Well, it comes down mostly to ownership and responsibility. So, when you own a car, you need to buy it yourself, and pay all the costs associated yourself. You also need to sell it on if you move away, for example.
When you rent a car via private lease, you pay a monthly fee to the car lease company. With that fee, you’re paying for the car, and most of the monthly costs of the car in one go. You can rent the car for an agreed-upon time, usually between a year and five years. That also means you give back the car at the end of the lease, and don’t need to worry about selling it on.
What is an occasion private lease?
Sometimes, you might need a car urgently: maybe you didn’t expect to need one, and suddenly realise you do, or maybe there’s a special occasion that requires it. In any case, if you need a car quickly, Bynco offers an “occasion private lease”. This type of lease offers you a second hand car, which you can drive for a reduced cost each month. This is definitely a cheaper option than running out and buying a new car in a panic, and it has all the advantages that a regular private lease does: your monthly costs, apart from fuel, are covered, and it’s very flexible.
We’ve worked together with Bynco on bringing you this article. If you have any questions about your individual situation, Bynco are happy to help! You can look through their website yourself, and contact them via email or phone. They pride themselves on providing a seamless, customer-centred experience to anyone looking to buy or lease a car in the Netherlands.
What are your experiences with driving in the Netherlands? Still wondering about getting a private lease on a car in the Netherlands? Let us know in the comments below.
Leasing a car is a popular option for expats living in the Netherlands. Advantages of leasing vs buying include lower monthly expenses, no insurance costs, and zero maintenance and repair costs – all of which are included in the lease price. This makes leasing a “no fuss” option ideal for expats.
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.
After you get your plates, you are obligated to take out a third party private car insurance, which is generally a bit expensive, but not as expensive as you might think. All in all, having your own car in the Netherlands will cost you around 150 euros per month depending on how much you drive.
Tourists are allowed to drive in the Netherlands on a valid state license, preferably in combination with an International Driver's License which may be obtained in the United States through the AAA.
So, can a foreigner living in the Netherlands buy a car in the first place? The simple answer is yes, although the process can seem a little daunting. There are a lot of practical aspects to consider and it can be difficult to know what platforms and dealerships to trust.
How much is a lease for a $45,000 car? Using our calculator, we input a $5,000 down payment, an assumed $25,000 residual value, an interest rate of 7% and a term of 36 months (three years). It resulted in monthly payment of $606 before taxes.
Additionally, leased vehicles don't typically retain equity when you lease, what you owe on the car only catches up to its value at the end of a lease. This could be viewed as a waste of money by some since you're not in an equity position at lease end.
You can deduct state and local sales tax whether you buy or lease a vehicle. But since sales tax is paid upfront for purchases and in monthly increments for leases, the way your business calculates it will differ. If you choose to itemize your deductions, you can deduct sales tax instead of income tax.
Buying a car typically makes more financial sense than leasing one, since you get to keep the vehicle as an economic asset and avoid higher finance charges and upfront costs. There are certain benefits that leasing has over outright buying a car, such as making high-end vehicles more affordable.
The monthly payments on a lease are usually lower than monthly finance payments if you bought the same car. With a lease, you're paying to drive the car, not to buy it. That means you're paying for the car's expected depreciation — or loss of value — during the lease period, plus a rent charge, taxes, and fees.
In the Netherlands, you are allowed to drive a maximum speed of 100 kilometers per hour on most highways during the day (from 6 a.m. to 7 p.m.). With the exception of sections where a modified limit of 80 kilometers per hour applies.
Leasing cars for personal use won't automatically guarantee you tax deductions on the expenses, however, if you drive the car for business purposes, you may be able to write off some of the costs. Miles driven to run your business or carry out your work are usually deductible.
We hate to break it to you, but owning a car in the Netherlands is really expensive — especially in larger cities. The average hourly rate is €2.80 an hour, but you can expect to pay €3-4 an hour in cities like The Hague, Utrecht, and Rotterdam, and as much as €7.50 in Amsterdam city centre.
The value of this remuneration depends on the car. If the car has no emission the value is set at 4% of the Dutch catalogue value. When the car has nearly no emission the car tax is 15%, then there is a 21% percentage for low emission cars.
Currently, Dutch drivers pay a 25% sales tax on new cars, a vehicle tax based on the price and weight of the car, plus a road tax based on the weight of the vehicle and the type of fuel used.
The cost of living in the Netherlands is believed to be around 800-1000 Euros per month, including food, rent, transportation, books, and other expenses.
If you have a valid license from your home state, you can drive in European countries for up to 90 days without further documentation. However, once you have spent more than 90 days in Europe and wish to continue driving there, it is recommended that you get an International Driver's License (IDL).
The United States driving laws state that you're required to have a valid driving license in possession to be able to drive in the US. This can be either issued by a US State or a foreign country. So, yes, you can drive with a foreign license in the US.
The statistic illustrates the average purchase price of used cars in the Netherlands in 2017, by age. As of 2017, a used car of three to five years old costs approximately 17,000 euros, whereas a car of five to ten years old costs roughly 6,000 euros less.
There were over 8 million passenger car registrations in the Netherlands at the start of 2017. With a population of over 17 million, this means 481 passenger cars for every thousand inhabitants; less than the EU average of 505 cars per thousand inhabitants.
The people who live in the Netherlands are not Netherlandish or Netherlandians, they're… Dutch. While it's not too difficult to figure that out, the difference in nomenclature can reveal some interesting historical insights. Throw in the name Holland, and there's even more complexity.
It's recommended you spend no more than about $2,000 upfront when you lease a car. In some cases, it may make sense to put nothing down and roll all of your fee costs into the monthly lease payment.
Finance Fee = ( Net Cap Cost + Residual ) × Money Factor
This is the method used by all lease companies and dealers. The Best Deal! Also be aware that you're paying finance charges on both the depreciation and residual (the total of which is the negotiated selling price of the car).
While you don't build equity with lease payments, you still get access to a car for a monthly fee. That means leasing a car isn't a waste of money in the same way that renting a home isn't a waste of money. Just like renting a home instead of owning one, leasing a car usually has fewer costs than owning it.
A car lease interacts with your credit history much like a car loan would. The lease adds a hard inquiry and a new credit account which often lowers a borrower's credit score at first. But making regular lease payments should add positive data to your credit history, potentially increasing your credit score.
If you're approved for your lease, you can use it as an opportunity to boost your credit score, which could give you more leverage when it comes time to upgrade. Just make sure to stay on top of your payments. Lease payments are reported to the major credit bureaus the same way finance payments are.
Leasing a car in 2023 might be better economically than any other time. If the off-lease prices are rising now, they may continue that trend making cars more expensive. If you're considering a lease and have bad credit, find out if you canlease a car with bad credit.
In a car lease, a down payment is often called a capitalized cost reduction, or cap cost reduction. Putting money down on a car lease isn't typically required unless you have bad credit. If you aren't required to make a down payment on a lease, you generally shouldn't.
Usually, standard new-car leases limit mileage to between 10,000 and 15,000 miles a year. However, if you drive more than 15,000 miles a year, a high mileage lease of a new car may still be a better option than purchasing a car.
Can I Take Section 179 on Leased Vehicles? Yes, you can. Like with financed vehicles, there are tax benefits of leasing a car for business purposes. Applying Section 179 to leased vehicles allows you to deduct the full cost of the purchase (up to the annual limits) before you've fully paid for the vehicle.
Car loan payments and lease payments are not fully tax-deductible. The general rule of thumb for deducting vehicle expenses is, you can write off the portion of your expenses used for business. So "no" you cannot deduct the entire monthly car payment from your taxes as a business expense.
If you use your vehicle for a business purpose, you're generally allowed to deduct your expenses in one of two ways: either as a mileage deduction or by tallying up actual car expenses. Here are typical expenses for the tax deduction using the actual car expense method: Car repairs. Car insurance (tax deductible)
Americans planning to shop for a new car in 2023 might find slightly better prices than during the past two years, though auto industry analysts say it is likely better to wait until the fall. Since mid-2021, car buyers have been frustrated by rising prices, skimpy selection and long waits for deliveries.
Pros of leasing a car. Lower monthly payments. A lease can ease the financial burden of monthly costs due to the smaller down payment compared with buying. ...
Benefits of leasing usually include a lower up-front cost, lower monthly payments compared to buying, and no resale hassle. Benefits of buying usually are car ownership, complete control over mileage, and a firm idea of costs. Experts generally say that buying a car is a better financial decision for the long term.
In 2022, the average price of an upper medium passenger car from the E segment was close to 104,000 euros in the Netherlands, whereas segment A and B had average prices of 18,800 and 29,000 euros, respectively.
So, can a foreigner living in the Netherlands buy a car in the first place? The simple answer is yes, although the process can seem a little daunting. There are a lot of practical aspects to consider and it can be difficult to know what platforms and dealerships to trust.
Buying a car typically makes more financial sense than leasing one, since you get to keep the vehicle as an economic asset and avoid higher finance charges and upfront costs. There are certain benefits that leasing has over outright buying a car, such as making high-end vehicles more affordable.
Instead of paying for the entire value of the car, your monthly payments cover the vehicle's depreciation (plus rent and taxes) over the lease term. Since you're only financing the depreciation instead of the purchase price, your payment will usually be much lower.
Korean car brand Kia has overtaken Volkswagen as the most popular new car make in the Netherlands, according to 2022 figures from motoring organisations Bovag and Rai Vereniging. In total, dealers sold 312,000 cars last year, down 3.2% on 2021.
Denmark. All three of the most expensive countries in this ranking are European, and Denmark takes pole position as the most expensive of all countries in our index.
If the buyer does not hold a Dutch passport, Dutch driving licence or Dutch ID card, the registration must take place at an RDW office. The buyer is responsible for registering the change of ownership with the RDW. Documents required: Vehicle Registration Card (Kentekencard)
If you wish to drive your vehicle in the Netherlands for more than 6 months, you will need to pay taxes. You can arrange this by submitting a car and motorcycle tax (BPM) return. If you are coming from outside the European Union (EU) you will also need to submit a Customs declaration.
Introduction: My name is Tish Haag, I am a excited, delightful, curious, beautiful, agreeable, enchanting, fancy person who loves writing and wants to share my knowledge and understanding with you.
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