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).
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.
Arval Luxembourg provides all-inclusive Private Lease contracts (excluding fuel), for which the monthly cost covers:
Private Lease contracts are not subject to any application fees.
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.
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:
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.
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:
Before signing the contract, you’ll need to decide:
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.
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.
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.