The 1st long-term “services included” lease solution proposed by a bank in the Grand Duchy of Luxembourg, via Arval Luxembourg, a member of the BNP Paribas Group.
The idea of a Private Lease is simple:
You choose a new vehicle:
make, model, colour and specification.
You pay a monthly “all-inclusive” lease:
including servicing, maintenance (technical checks and winter/summer tyres), material damage cover, 24/7 breakdown cover and replacement vehicle.
You manage your budget:
you pay a fixed monthly fee, depending on the make of your car, for the length of time (between 36 and 60 months) and mileage of your choice.
What is a Private Lease?
It's a solution whereby a specialist company, Arval Luxembourg, will finance and manage your car. You choose the type of new car you want, how long the lease should last (up to 60 months), the maximum mileage you'll need (depending on the model) and, with this type of contract, all additional services such as maintenance, insurance, breakdown cover, tyres and replacement vehicle are included.
A Private Lease is the perfect solution to help you manage your budget, save time and drive away with peace of mind, while entrusting the management and financing of your new vehicle to a professional.
Within this scheme, you can lease any type of new vehicle under 3.5 tons (excluding commercial and Renault vehicles).
Who are Private Leases for?
A Private Lease is a vehicle leasing contract taken out by an individual and not a benefit in kind granted by the employer. For tax reasons relating to this type of contract, non-residents are not eligible for the offer.
How much does it cost and what services are included in a Private Lease contract?
Arval Luxembourg provides all-inclusive Private Lease contracts (excluding fuel), for which the monthly cost covers:
use of the vehicle,
servicing and maintenance: ongoing and intermediate servicing, breakdown repair, tyres (depending on the expected mileage) and replacement of worn or defective parts,
insurance and international assistance: insurance, material damage cover, replacement vehicle, breakdown cover, towing and repatriation.
Private Lease contracts are not subject to any application fees.
What's the difference between a Private Lease and a finance lease?
A Private Lease is a long-term rental contract, also known as operational leasing. There is one key difference compared to a finance lease – whether or not you have the option to buy the car at the end of the contract.
A finance lease is a rental contract with a purchase option. In other words, at the end of the lease, you have the opportunity to buy the car you've been leasing by paying off the remaining money as specified when you signed the contract. In addition, a finance lease does not include operational services such as servicing, maintenance, breakdown cover, etc.
A Private Lease is not intended to finance a car that may, in time, be purchased by the lessee. At the end of the contract, the vehicle remains the property of the leasing company, Arval Luxembourg, which is responsible for selling it on the second-hand market.
But the advantage of a Private Lease is that you can enjoy a brand-new car, with a wider range of services and personalised support during the contract, all for one fixed monthly cost throughout.
Negotiating the purchase price of your new car is entrusted to the leasing company, Arval Luxembourg.
How are the monthly payments calculated for my vehicle?
The monthly cost is defined at the start of your contract. It's calculated using Arval Luxembourg's standard formula, based on the following criteria:
the purchase and resale values of your car (residual value),
the lease duration and mileage,
Is it better to lease or buy if you don't change your car that often?
How long you'll drive the car is just one variable to consider when making your decision. Private Lease contracts help you manage the overall cost of owning a car by making it a monthly expense. Buying a car, on the other hand, often involves keeping the same vehicle for a very long time, at least for the time it takes to pay it off (4 or 5 years) and often much longer.
Yet the older your car becomes, the more expensive it is to run. Buying is therefore not necessarily the most cost-effective solution in the long run, as it doesn't allow you to manage the overall cost of having a car or, consequently, to save up to replace a car that's become timeworn and expensive to run.
Finally, older vehicles can potentially be more detrimental to the environment. Nowadays, environmental impact is an important issue when choosing our cars.
Is Private Leasing more expensive than buying?
A Private Lease is just as cost-efficient as buying outright for those who drive an average to significant number of miles for the following reasons:
There's no impact from the car's declining value, nor from the increasing price of raw materials or labour costs for servicing at the dealership.
Use of the car is paid for through monthly payments.
The spreading of costs across the entire Private Lease contract protects against unforeseen expenses related to major repair bills.
As the leasing company, Arval Luxembourg's purchasing power helps to get you the best possible terms and reduce the cost of your vehicle.
It's therefore possible to protect your savings and continue making the most of them, or spend them on other things, not just a new car.
Do Private Lease contracts change over time?
Before signing the contract, you'll need to decide:
the make and model of car,
any options or extras,
the expected lease duration and mileage.
During the contract, changes may be made to the lease duration and mileage (according to the maximum duration and mileage limits authorised for the vehicle in question), free of charge, up to 3 months before your vehicle is due to be returned. Your monthly payments will be adjusted based on any such changes. However, it is important to provide a proper estimate of its mileage when taking out the contract, because in the event that the mileage is exceeded, an amendment to the contract will be proposed, taking into account a new lease and a new mileage allowance.
At the end of the Private Lease contract, what state does the vehicle need to be in before handing it back?
Any car that's more than a few years old isn't going to be in brand-new condition. But a distinction must be made between normal wear and tear and actual damage. If you were buying a used car, you'd want to pay less for one with very obvious scratches and visible dents. And it's the same for our customers. Therefore, any abnormal damage will lower the resale price and Arval Luxembourg will have to charge you a justified fee for the loss of value incurred. As a general rule, minor issues won't be repaired so the bill will be lower.
Arval Luxembourg will contact its customers 3 months before the end of their lease contracts and provide a handover guide containing all the necessary information for hassle-free return of your vehicle and outlining the state in which it should be returned, with photos to help you.
I'm interested in a Private Lease. Who should I speak to and how do I sign up?
Step 1: Visit your preferred garage* and choose your car. Decide on the make and model you want (options, colours, etc.) with the dealer.
Step 2: Make an appointment with a BGL BNP Paribas branch, where one of our advisors will calculate the monthly cost for a Private Lease based on your chosen vehicle, lease duration and mileage. Our advisors will then check your ability to meet the repayments.
Step 3: Once the application has been accepted by the bank, and with your agreement, Arval Luxembourg will take over as long-term leasing specialists and finalise and manage your contract.
*In the Grand Duchy of Luxembourg. Renault cars are not eligible for this scheme.
Interested? If you've already chosen your next car and settled on a price with your local dealer, come into a BGL BNP Paribas branch with your quote to see how much you'd pay with a Private Lease instead.