How do I lease a car in Germany?

Table of Contents :

Are you resident in Germany? Want to drive a new car? Opt for the car leasing system. This practice consists of leasing a vehicle with an option to buy at the end of the contract. In this text, we will inform you: how to make a car leasing in Germany?

Leasing in Germany: How can a French citizen lease in Germany?

Leasing in Germany is subject to many of the same conditions as leasing in France, especially for French citizens. It offers a wide range of features, depending on the lessee's situation.

Of course, there are two types of rental for French people who do not live in Germany:

the LLD or Long-Term Rental ;
As well as the LOA or Lease to own a new car.

In fact, companies often use long-term leasing, which involves paying monthly fees to use the vehicle without the intention of purchasing it at the end of the contract. Financial leasing is similar to a mortgage, where at the end of the contract you have the option to purchase the vehicle at a pre-determined residual value.

Financing a new car with a LOA in Germany allows you to :

Lower monthly payments;
Take advantage of competitive offers on the German automotive market
Change vehicles easily at the end of the contract without having to worry about resale.

Choice of car

In Germany, the leasing application process begins with selecting the vehicle you wish to lease. Once you have made your choice, you can move on to the next step to complete the leasing process in Germany!

Finding the right car supplier

To find the right car supplier, you can search online or visit dealerships in Germany. Don't hesitate to request different quotes so you can compare the offers.

It's also very important to understand the clauses of your leasing contract, particularly with regard to the mileage allowed and the terms and conditions for returning the vehicle!

Documents delivery

After that, you'll need to submit the necessary documents to the leasing company or dealer, such as proof of income and credit history, etc. Once your application has been approved, we'll discuss the terms and conditions of the lease. Once your application has been approved, we'll discuss the terms of the lease contract, such as duration, annual mileage and monthly payments.

If you want to get a car supplier in Germany, you need to provide specific documents including:

An identity document of the tenant;
Proof of address ;
A proof of income;
As well as a driver's license;
A mandatory RIB;
And finally a professional Kbis of your activity.

Once the contract is signed, you can take possession of the vehicle you have chosen.

What are the conditions for leasing a car in Germany for private individuals?

If you opt for LOA or LLD in Germany, start by comparing the various service providers in order to find the most suitable offer to your personal situation. Once you have an idea of what you want, i.e., a German long-term lease or a German lease-purchase agreement, you will need to make sure you meet certain requirements. These are:

Have 18 and over ;
Reside in Germany ;
Have a fixed and regular income including all fixed expenses etc. ;
Have a indefinite employment contract or a fixed-term contract beyond the scheduled end of the leasing contract.
Have a good credit rating (SCHUFA score)

Leasing in Germany: for whom?

For your information, a French non-resident cannot lease. Before applying, the tenant must first consider the complications of leasing if you are not in Germany. This is caused by the absence of a German address.

In Germany, on the other hand, only independent and the game's entrepreneurs are entitled to long-term rental of a German vehicle and equipment.

What happens at the end of a leasing contract in Germany?

At the end of the leasing period, two cases may arise:

On the one hand, you will returning the car to the rental company so that he can check for any damage. He may also check the mileage and compare it to the estimate in the contract. However, fees may be charged if the vehicle is damaged or if the mileage exceeds the estimate mentioned in the contract. In this case, you can take out another rental contract if everything is in order.
If you have opted for LOA, i.e., leasing with an option to purchase, you can buy the car at the end of the contract leasing.

How much does leasing cost in Germany?

The price of a lease varies considerably, ranging from around €100 for a small used car to over €700 for a larger car, depending on the specific terms of the contract and the vehicle being leased.

Following the conditions for setting up a company in Germany with a contribution of approximately 5 to 15%, Here are the average prices for a lease purchase agreement in Germany:

Rs3 - 1400€ / month
A45 - 1100€ / month
Golf 8 r - 750€ / month

If you decide to lease without a deposit, but still set up a company in Germany, you'll need to add around €300 to €500 per vehicle, with a deposit of €3,000 as a rule.

What are the advantages of leasing?

Leasing is advantageous for many reasons.

Allows for significant savings

In fact, the monthly payments are lower than when buying on credit. Essentially, if you prefer to lease a gasoline or diesel-powered car, you'll pay less when you buy a vehicle.

Thanks to the price of the monthly instalments, you'll be able to choose a higher range. You'll have access to a new car, but you'll have to choose the leasing offer with no down payment.

Easier access to new cars

It is possible to access new/recent vehicles without having to pay a large sum of money all at once. In addition, car leasing often includes maintenance, repairs, etc., which can help reduce the cost of vehicle maintenance.

A certain flexibility

If you like to change cars regularly, then car leasing is an excellent option! Choose a long-term contract to minimize your monthly leasing costs, or opt for a short-term lease if you plan to change your vehicle soon. What's more, you can change your preferred make of car.

Leasing supplier Germany: criteria to consider

When choosing a leasing provider in Germany, several criteria must be taken into account to ensure you make the best choice:

Evaluate the supplier's reputation and reliability, by consulting customer reviews and checking the supplier's track record in the marketplace.
Check the leasing terms offered, such as interest rates, payment options, and contract flexibility. A good provider should offer clear and transparent contracts with no hidden fees.
Choose a provider that offers a variety of models tailored to your specific needs. Additional services, such as maintenance, insurance, and after-sales service, can greatly influence your leasing experience.
Compare offers from several suppliers to ensure you get the best value for money.