What is Private Lease?
With Private Lease you can drive a brand-new car for a fixed monthly instalment. The lease company takes care of everything for this amount! This means an end to annoying unexpected costs for maintenance and repairs, for example. The lease company also arranges the insurance. You have only to fill up the car! The period is up to you, but varies between 24 and 48 months.
The monthly instalment includes most costs associated with a car such as:
- Motor vehicle tax
- Breakdown assistance
- Replacement vehicle
As a private individual, you pay no addition for tax as with a commercial operational lease. At the end of the contract, you return the car and choose a new one.
Buy or Lease?
If you are a private individual looking for a new car, you choose between buying or private lease based on your personal situation and requirements.
To make a good comparison, it is important to know exactly how much a car costs. This may sound logical, but research shows that over 85% of car owners have no idea what their car actually costs them each year.
Calculating car costs
To gain a good insight into the different car costs, it is wise to make your own calculation. The cheapest car to buy is not automatically the cheapest car. Once you purchase a car, you have to deal with depreciation, consumption, maintenance, etc. Selling your car also costs you money and all these factors affect the monthly cost of your car.
You calculate car costs by considering:
- Depreciation (purchase price minus estimated selling price)
- Motor vehicle tax
- Repairs, maintenance and replacing tyres
- Breakdown assistance
- Financing costs
- Unforeseen expenses
Calculate the annual costs and then divide by 12. Now you have calculated the monthly car costs and can compare them with our private lease rates.
Fuel costs have deliberately been ignored, because this amount is not included in the monthly instalment you pay to Private Lease. However, it is still wise to consider fuel costs in your choice. After all, with Private Lease you can drive a new car that is more economical than a second-hand car. As a result, you pay less for fuel, which saves you money.
Can I trade in my existing car?
If you have chosen a private lease car from Alphabet, we will also help you sell your existing car. We work with 247auto.nl for this purpose.
Go directly to 247auto.nl to receive a proposal: https://www.247auto.nl/alphabet.
What to do if you have no Dutch driving licence or passport?
If you have no Dutch driving licence or passport, the dealer cannot register the car in your name when you collect it.
To resolve this, it is very important to follow these steps:
- Inform the Private Lease team as soon as possible by sending an e-mail to: firstname.lastname@example.org.
- We will temporarily register the car in Alphabet’s name. This will cause an increase in the monthly lease instalment because additional taxes apply when a car is registered in a company’s name.
- After picking up the car, contact us at +31 (0)76 5793888. We will send you necessary registration codes by e-mail.
- Request an extract from the Persons Database (Uittreksel Basis Register) from your city council. Ask for your citizen service number (BSN) to be included in the extract. This may take up to five working days.
- Make an appointment at a National Vehicle and Driving Licence Registration Authority (RDW) location: www.rdw.nl/over-rdw/contact/keuringsstations.
- Remember to take these with you: A. Registration codes, B. an ID card or driving licence from an EU country, diplomatic passport or passport, C. Extract from the Persons Database.
- When registering the car, you will receive Part 1 of the new registration code from the RDW. Part 2 will follow by post with your registration card. Scan both parts of the code and send these to email@example.com.
- From the day you perform the actions in step 7, the monthly lease instalment will be corrected to the original monthly amount of your order.
Can I choose the supplying dealer?
Unfortunately, this is not possible. We can only offer our competitive rates by making purchasing agreements and selecting the supplying dealer ourselves. We will always consider your place of residence as far as possible.
Can I add other options and/or accessories?
No, this is not possible. We offer all the options for the selected private lease car on our website. The available colours are also always the colours you can choose from online.
How do I determine the number of kilometres I travel?
Sometimes it is difficult to estimate the annual number of kilometres you travel. Consider, for example:
• summer and/or winter holidays
• family visits and sports
• business trips
How can I request an offer?
If you do not wish to order the selected car yet, you can also save the offer. Select the ‘Print’ option next to the order button. You can print the offer or save it as a PDF file, depending on your settings. The offer is valid for 14 days or as long as stocks last.
Is the car definitively ordered after ordering online?
No, once you have placed your order online, you will receive an e-mail confirmation with the next steps. This also states which information we need from you for the financial acceptance. When these steps have been completed, you will receive the lease contract and the car can then be definitively ordered.
When will my car be delivered?
Once we have received the signed lease contract, your new car will be ordered from the dealer. You will then receive notice of the expected delivery date from us.
Where is the car delivered?
We will always consider your place of residence and the supplying dealer as far as possible. We sometimes have a sales promotion with a selected dealer. In this case, the distance may not be ideal for you. You can then use the Alphabet delivery service.
Can my car also be delivered to a location of my choice?
Yes, that is possible. If you cannot collect the car yourself, you can choose the delivery service. Let us know in good time so we can plan everything for you. Delivery costs €115,-.
What is included in the monthly instalment?
With Private Lease you can drive with peace of mind, because the monthly instalment includes all car costs. We explain these costs below:
- Regular maintenance, repairs, replacement of tyres and any periodic vehicle inspection. You can always approach the official dealer and use the free collection and drop-off service.
- Replacement transport in the Netherlands if maintenance or repairs to the car take longer than 24 hours. You will get a category A car, comparable to a Peugeot 108, as standard.
- Motor vehicle tax. This indirect tax is levied in certain countries, including the Netherlands, on the possession and not the use of a motor vehicle. It is therefore a holdership tax, popularly known as road tax.
- Breakdown assistance in the Netherlands and abroad. If your car breaks down or is damaged while you are on the road, you can always call Alphabet Assistance, our 24-hour emergency centre. The telephone number is +31 (0)76 5711711.
- Third-party insurance and coverage of bodywork damage (all-risk).
- Depreciation and interest
What is not in the lease contract?
The monthly instalment does not include operating costs such as fuel, parking charges and toll fees. Liquids and lubricants outside the normal maintenance schedule, such as extra windscreen wiper fluid, are also at your own expense.
Select extra guarantees that fit your personal situation
For an additional monthly amount, it is possible to supplement the lease contract with:
- Driver and passenger insurance: driver and passenger insurance compensates personal injury and damage to the luggage or clothing of the car’s occupants.
- Replacement transport abroad: this also entitles you to a replacement car abroad. This is always in a vehicle category equal to that of your private lease car.
- Lower excess: this reduces excess if there is non-recoverable damage from €450,- to €225,-.
- All-season tyres: tyres for all seasons and weather conditions. Changing tyres is a thing of the past. Also approved in all countries where winter tyres are mandatory.
Can I add anything to the contract after the car has been delivered?
Adding contract options is often possible, for example additional insurance or replacement transport abroad. It is more difficult to add items to the car after delivery. Factory options are impossible, but you can contact us for other items.
Can I change the number of kilometres in my contract?
If you occasionally drive more kilometres, it is usually more advantageous to pay for the additional kilometres and not amend the contract. If you consistently drive more kilometres than estimated in advance, you can increase the annual number of kilometres during the contract period. We will send you a statement of the new monthly instalment based on the higher annual number of kilometres. It is impossible to reduce the annual number of kilometres.
May I also take my lease car on holiday abroad?
Yes, as long as that country is not excluded from the green insurance card. You may also have assistance abroad with an Alphabet Private Lease contract. We recommend you also include the option of replacement transport abroad in the contract. You may then have replacement transport in an equivalent vehicle category. Replacement transport in the Netherlands is included in the lease contract as standard.
What happens if the car breaks down?
We always offer you breakdown assistance in the Netherlands and abroad. In addition, we pay for the replacement transport in the Netherlands after 24 hours. The first 24 hours are for you own costs. If you have included the option of replacement transport abroad in your contract, you may also have a vehicle from an equivalent category as a replacement after 24 hours.
May other people also drive the car?
We have no problem if your partner or family members drive your private lease car, provided they have a valid driving licence under Dutch law. This also means supervising a 17-year-old driver (2todrive) is allowed. However, you must comply with all the requirements. The car cannot be offered and/or rented to others for payment.
Where are car maintenance and/or periodic vehicle inspections performed?
Maintenance and any periodic vehicle inspections are always performed at the official dealer or an independant service partner. You may choose the dealer. If you have this done at your nearest Alphabet-approved dealer, you can use additional services such as our free collection and drop-off service. You will then automatically be notified when it is time for maintenance and/or a periodic vehicle inspection and, if desired, the car will also be washed for free.
How will my monthly instalment be charged?
Our standard procedure is to collect monthly instalments by direct debit. We collect around the second working day of the month to which the invoice relates.
Why must I pay more than the monthly instalment at the start of the contract?
Usually a car is not delivered on the first of the month, but during a month. We then calculate the period from the date on which the car is delivered to you. This means that your first invoice could be higher than the agreed monthly instalment, because the period we charge on this first invoice may be longer than one month.
Why must I pay VAT?
Regular citizens pay VAT on everything they buy. VAT stands for value-added tax. Like all other taxes, it is an additional source of revenue for the government and is imposed as a levy on any product or service.
When and how are kilometres settled with you?
To avoid the surprise of a high final payment at the end of your contract, we charge you for additional kilometres every 12 months.
If you have a lower number of additional kilometres at the end of the contract, you are simply refunded the overpaid number of additional kilometres. This way, you never pay too much.
Why is the amount on my first invoice different from the lease instalment in the contract?
The lease amount on the first invoice consists of the instalment at the time of delivery and for one month in advance. This is why the amount on this first invoice differs from the monthly lease instalment in your contract. The private motor vehicle and motorcycle tax (BPM) and holdership tax (HSB) are shown separately on the invoice, because no VAT is payable on them. These components are included in the lease instalment. The collection date is always mentioned on the invoice. The first invoice is followed by a monthly invoice with a contractual lease instalment.
Is there an age limit for Private Lease?
The minimum age is 18 years. Alphabet applies no maximum age.
Why am I financially assessed?
We believe the contract between you and Alphabet should be well-balanced for both parties. EDR Credit Services performs the financial assessment and acceptance for us. This aims to limit the risks of payment problems. EDR Credit Services applies the ability-to-pay standards as prescribed by Keurmerk Private Lease.
What is an ability-to-pay standard?
The ability-to-pay standard is the amount that a consumer must always have available for living expenses. Your minimum basic standard is first determined based on your family situation (Single person - Single person with children - Married/cohabiting - Married/cohabiting with children). Your ability-to-pay standard is then determined based on this basic standard and your total net income.
How is the final ability to pay determined?
Besides the ability-to-pay standard, your housing expenses and certain other fixed costs, where applicable, are also taken into account. These are maintenance, child care costs, other exceptional fixed costs and existing financing costs. For example, unused credit lines on your current account or credit card will also be considered. By deducting the above costs and the ability-to-pay standard from your total net income, your financial ability to assume further obligations is determined. In this case, the monthly lease instalment.
A summary of all the information we need to determine whether the ability-to-pay requirements are met is provided below.
What steps are involved to check my creditworthiness?
EDR Credit Services works on Alphabet’s instructions to financially approve your application. Financial approval consists of these steps:
- Supplementing/adapting personal data
- Automated credit assessment
- Supplying required documents
- Review of your application by a credit analyst
- Final recommendation by EDR Credit Services
What information does EDR Credit Services need for the assessment?
To further process your application for the Private Lease car, we need information about your family situation, source of income and monthly expenses. EDR Credit Services will send you an e-mail with a link to the EDR lease portal. You can submit the required information there. For quick processing, please provide the following within three days of the request:
- A copy of your driving licence (front and back)
- A copy of two payslips and bank statements in your name from the last two months, showing the income and housing expenses (rent/mortgage), including rent allowance, if you are employed.
- A positive declaration of intent/employer’s statement, if you are employed on a temporary basis.
- A copy of a benefit/pension specification if you receive a benefit and/or pension.
- A copy of the most recent financial statements (private limited company/commercial partnership) if you are an independent entrepreneur or three recent bank statements if you are a sole proprietor.
- Proof of monthly housing expenses
What does Alphabet do with the National Credit Register?
We check your current financial obligations and whether there have been any payment arrears at the National Credit Register (BKR). If you drive an Alphabet lease car, we also report this payment obligation to the National Credit Register. Keurmerk Private Lease has determined this must be 65% of the total amount. In this way, you can also be sure of responsible future payment obligations.
If you enter into a 24-month agreement with an instalment of €250,-, a payment obligation of €3.900,- will be registered. This is calculated as: (€250,- x 24 = €6.000,-) x 65% = €3.900,-.
If you are in payment arrears with us for an extended period, we will report this to the National Credit Register under its rules. Before this happens, we will already have contacted you several times.
Can I also pay a deposit?
It is not possible to pay a deposit.
Must my partner co-sign?
If you want, your partner can co-sign the contract. The ability-to-pay standards for cohabitants or married couples are higher than for single persons.
Is the car also insured abroad?
Yes, the cover also applies abroad. The countries where the car is insured are listed on the green insurance card.
Which insurance is included?
The car has third-party cover (statutory liability, wettelijke aansprakelijkheid in Dutch) as required in the Netherlands. This is coverage for damage, loss or injury caused to others. There is also comprehensive insurance (casco), also called all-risk cover. This insures damage to or theft of the car. Damage to personal property or personal injury are not covered by the comprehensive insurance.
Which insurance is optional?
To insure personal property damage or personal injury resulting from an accident, you can take out driver and passenger insurance (schadeverzekering inzittenden, SVI). If you want extra insurance to cover the eventuality of permanent disability or death, you can also take out personal accident insurance for passengers (ongevallen verzekering inzittenden, OVI). Personal injury and damage to your personal belongings are not covered under the comprehensive insurance.
What is not covered?
Legal representation relating to traffic and redress matters cannot be insured through Alphabet.
Where can I report damage?
You can report damage to your car immediately online at www.mijnschademelding.nl. If you have completed a claim form, please send it by e-mail to firstname.lastname@example.org or by post to Alphabet Nederland, Claims Department, P.O. Box 6890, 4802 HW Breda.
For which activities am I not allowed to use the car?
You may not use your lease car for driving lessons, races, skills competitions or other activities not considered regular car trips, as your car is not insured for these situations.
Where can I find the insurance conditions?
You will receive these as standard with your lease contract, but they can always be accessed here on our website.
Where can I find my international motor insurance card?
The international motor insurance card is a certificate which proves that your current car is covered by the insurance. In the Netherlands this is better known as the “groene kaart” or literally translated “green card”. This definition can be misleading since this certificate does not have to be green per se in most use cases, but rather can be shown in black and white or digitally. You can request a digital version in your private My Alphabet account.
Are premiums and the excess payable on damage fixed?
The insurance premium is fixed during your contract. Alphabet may adjust the premium only because of changes imposed by the government. Your excess payable on damage is also fixed during the term of the contract. If you have over two non-recoverable claims for damage within 12 months. Alphabet may increase your excess for the remainder of the contract. You will of course be notified of this in advance.
Where will any damage be repaired?
For minor damage, you can go to the official dealer. Other damage must be repaired by a body shop. Always check with us first whether this is an Alphabet partner.
How is a replacement car arranged?
If the repairs take longer than 24 hours, Alphabet pays the costs. The costs for the first 24 hours are at your expense. Alphabet offers an A category car, such as a Peugeot 108, as a replacement car.
If you have also chosen replacement transport abroad in your Private Lease contract, you may have an equivalent car.
What happens to claim-free years you have accrued before signing a Private Lease contract?
Claim-free years are recorded for three years in the ROY data system (database for non-life insurers), after which they expire. Depending on your insurer, you may be able to transfer them to a family member, such as your partner.
Are claim-free years also accrued during the term of the contract?
Under the bonus-malus system, claim-free years are not accrued at Alphabet Private Lease. However, you may request a claims report from us by sending an e-mail to email@example.com . This report lists the instances of non-recoverable damage with the costs and cause of the damage. Insurers will decide for themselves whether to grant you a premium discount based on the claims report. This differs from one insurer to another.
Is it possible to end a contract early?
Yes, this is possible, even within the first year.
We will then settle any additional kilometres with you and you will pay a cancellation fee. A further explanation, including examples, can be found in the chapter ‘Ending or cancelling your contract’.
Can I also cancel the contract within 12 months?
Yes, this is possible. We also offer you the possibility to cancel the contract within the first year.
Are there any charges if I wish to end the contract early?
In the unlikely event you wish to return the private lease car earlier than the end date of your contract, we will charge you a cancellation fee. The cancellation fee depends on the number of months you still have to go until the end of the contract, which is also called the remaining term. The remaining term is therefore the number of months calculated from the early return of the car to the end date of the contract.
How is the cancellation fee calculated?
To calculate the cancellation fee, the remaining term is expressed as a percentage of the total term of the contract. The table below shows you how many instalments the cancellation fee amounts to.
Remaining term of the lease contract expressed as a percentage:
From To Number of instalments
0% 25% 2
25% 50% 4
50% 75% 5
75% 100% 6
You have a private lease contract for 48 months with a monthly instalment of €250,-. You wish to end the contract after 30 months. The remaining term is now 18 months, i.e. 37.5% of the total term. Your remaining term falls within the 25 - 50% period in the table. The cancellation fee amounts to four instalments, which in this example is 4 x €250,- = €1.000,-. The maximum cancellation fee has not yet been considered in this example.
What is the maximum cancellation fee?
1. We will never charge you more than 35% of the total remaining instalments.
If you wish to end the contract after 45 instead of 48 months, you would pay two lease instalments (2 x €250,- = €500,-) as a cancellation fee in accordance with the table. After all, the remaining term is now three months, i.e. 6.25% of the total term. However, 35% of the total remaining instalments is 35% x €750,- = €262,50.
Based on the maximum cancellation fee, your costs in this example are therefore not €500,- but €262,50.
2. Besides the maximum percentage that we apply for the cancellation fee, this fee is also capped at the difference you would have paid if you had contracted for a shorter term at the outset.
In the first example, you paid instalments for 30 months at €250,- and the cancellation fee was set at €1.000,-. The 30-month period cost €7.500,- + €1.000,- = €8.500,-.
Had you immediately chosen a 30-month period with an instalment of €275,-, for example, you would have paid €8.250,- over 30 months. This is €250,- lower, so the cancellation fee will be €750,- instead of €1.000,-. This way you can be sure that you never pay too much for your lease car!
How are additional kilometres calculated?
Besides the cancellation fee, any additional kilometre payments will be charged proportionally.
If you end the contract earlier, the permitted number of kilometres will be based on the actual term. Any additional kilometres will then be settled at the rate specified in your lease contract.
You have concluded the contract based on 15.000 kilometres per year for a period of 48 months. You wish to end the contract after 30 months, with 40.000 kilometres on the odometer.
This means 1.250 kilometres (15,000 ÷ 12) are included for each month. After 30 months, the maximum number of kilometres is 37.500. You must therefore pay an additional amount of €125,- (2.500 x €0.05).
If you have already paid for some additional kilometres and need not pay or have to pay less when the contract ends, we will refund you the difference.
This is a translation of the original Dutch text, for convenience purposes only.
The original Dutch text will be binding and shall prevail in case of any discrepancy between the Dutch text and the English translation.