Financial Leasing for Cars in the Netherlands: Is It Worth It and Where to Get It?

If you are comparing ways to finance a car for business, financial lease is a popular option in the Netherlands. Below we explain what it is, how it works, whether it can be worth it, and where to find offers. You will also see a step-by-step math example that compares financial leasing to buying the car outright.

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What Is Financial Leasing for Cars?

Financial lease is a financing arrangement that works much like a loan. The leasing company buys the car on your behalf and leases it to you. You pay a fixed monthly amount that covers principal and interest until the car is fully paid. You are the economic owner during the term (the car is on your balance sheet if you are an entrepreneur), and after paying the final instalment (and any agreed residual/balloon), the car is yours.

Key points

• Fixed term (for example 36–72 months)
• Fixed monthly payment (principal + interest)
• Often a residual/balloon amount at the end to lower monthly costs
• Ownership at the end of the term (unlike operational lease)
• You arrange running costs like insurance, maintenance, and road tax

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Is Financial Leasing Worth It?

It depends on your goals. If you want to spread costs, keep cash flow, and still own the car at the end, financial leasing can be attractive. If your priority is the lowest total cost and you have the cash, buying outright may be cheaper.

Think in terms of three questions:

1. Cash flow vs total cost – Leasing improves monthly cash flow but typically increases total interest paid over time.
2. Balance sheet and tax – For entrepreneurs, the car and loan appear on the balance sheet; interest and depreciation can be business costs (details depend on your situation).
3. Flexibility – You own the asset at term-end, but you also carry depreciation and resale risk.

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Example: Financial Lease vs Buying Outright (With Math)

Let’s compare two simple scenarios for the same car. This is an illustrative example (ignoring one-off fees, insurance, maintenance, VAT effects, and tax deductions which vary by business and use).

Car price (incl. VAT): €24,000
Financial lease terms:

• Term: 72 months
• APR (fixed): 7.0%
• Residual/balloon at end: €3,600
• Down payment: €0

Monthly payment calculation (standard loan with balloon):

• Monthly rate r = 7% / 12 = 0.5833%
• Present value financed = Price − Residual / (1 + r)^n
• Payment = r × PV ÷ [1 − (1 + r)^(−n)]

Result (rounded):

• Monthly payment ≈ €368.80
• Total of monthly payments over 72 months: €368.80 × 72 = €26,553.60
• Add residual at end: €3,600
• Total paid (nominal): ≈ €30,153.60

Buying outright today: €24,000 (one-time payment)

Difference (ignoring tax effects/fees): Leasing costs about €6,153.60 more in nominal euros due to interest. For entrepreneurs, interest and depreciation may be deductible and VAT treatment can differ, which can change the effective net cost. Always check with your accountant.

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Three Reasons to Choose Financial Leasing

1. Preserve cash flow – Spread the cost over time and keep working capital free for inventory, marketing, or growth.
2. Ownership and control – You are the economic owner, can customize the vehicle, and keep it at the end by paying the residual.
3. Business accounting benefits – The car appears as an asset; interest and depreciation are typically business expenses (specifics depend on your situation).

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Three Reasons Not to Choose Financial Leasing

1. Higher total cost – You generally pay more in total due to interest and any fees.
2. Balance sheet impact – You add debt and an asset, which can affect credit ratios and borrowing capacity.
3. You carry the risks – Maintenance, insurance, depreciation, and resale risk are on you; you must also plan for the balloon payment at the end if one is agreed.

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Where Can I Do Financial Leasing?

• Banks and dealer finance arms – Many brands (e.g., via the dealership) and banks offer financial lease products.
• Comparison and application platforms – For a quick overview and to request offers, try: Regel je Lease.

Tip: Compare at least three offers with the same assumptions (price, term, residual, kilometers, and included fees) to get a fair APR comparison.

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Financial vs Operational Lease (Quick Contrast)

• Financial lease: You are the economic owner, you manage running costs, and you keep the car at the end (after any residual).
• Operational lease: More “all-in” monthly service; at the end you typically return the car and do not own it.

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Learn More and Check the Latest Rules

For detailed and up-to-date information on business asset leasing in the Netherlands, visit the official government page:
business.gov.nl – Business asset leasing.