In this article
Operational leasing is often praised for its advantages, such as lower initial costs and flexibility in fleet renewal. However, like any form of financing, operational leasing also has its drawbacks. Let's take a closer look at them.
The fact is that operational leasing can pay off when choosing the right car model and the right tariff, saving you a lot of money compared to buying a new car. It can also offer you perfect comfort, a carefree ride, and reduce the administrative burden in your company. But before you opt for it, you need to consider all its pros and cons. This form of financing is not suitable for everyone – for many reasons.
Overall operating costs can be higher
One of the main (dis)advantages of operational leasing is the overall costs. Monthly lease payments are not exorbitant, usually amounting to a few thousand Czech crowns (depending on the model, age of the car, and chosen tariff). However, over time, they add up and can even exceed the price of a new car.
Therefore, operational leasing is more suitable for short-term use over a few years, or it is advantageous for companies and self-employed individuals who can deduct a lot from their taxes. But if you want to drive a car for many years and keep the same vehicle for its useful life, operational leasing is not the right solution – it would be more advantageous for you to buy your own car.
Mileage limitations of operational leasing
Some companies offering operational leasing include various restrictions in their contracts that prevent you from using the car to its full potential and as you would like. Mileage limitation is particularly typical.
Birne offers 3 tariffs
For example, at Birne, you can choose between three operational leasing tariffs – the Value tariff offers a mileage of 10,000 to 15,000 km/year, the Smart tariff allows a mileage of 20,000 to 30,000 km/year, and the Flexi tariff has unlimited mileage. So, if you don't want to keep track of your kilometers driven and limit your driving, the Flexi tariff is the ideal and most flexible solution for you.
- Value: mileage 10,000 - 15,000 km/year,
- Smart: mileage 20,000 - 30,000 km/year,
- Flexi: unlimited mileage.
Duration of car operational lease
Another problem with most leases is the fixed-term contract. You typically conclude it for 24 months, 36 months, or another predetermined period. If you change your mind during its term and would like to swap the car for another or change the mileage, you're out of luck with most leasing companies.
Birne offers flexible operational leasing
However, at Birne, you'll find a flexible solution again – not only will we not automatically say NO to any request, but we will try to accommodate you as much as possible. And if you choose the Flexi tariff, you can rent a car for just a few months and return it whenever you want. You won't find that with other leasing companies.
Limited flexibility
If you own your car, you can do anything with it. Install a wing, change the paint color, decal it, modify the interior... But you can't do any of this with a car on operational lease, because it's not your car, but the property of the leasing company. Therefore, it's essential to thoroughly consider in advance what kind of car you need, what you expect from it, and what it should look like. Later exchanging the car for another can be very complicated, if not impossible.
Similarly, keep in mind that you must always adhere to the conditions set out in the contract, including restrictions on the use of the car and its maintenance. For example, you cannot arbitrarily carry out repairs on the car, take it to unauthorized services, and so on. Everything must be according to the contract – or carried out in agreement with the leasing company.
If you violate the conditions in the contract (either unknowingly or intentionally), you will face various penalties or you will have to pay for everything afterwards. Therefore, it is necessary to read the contract carefully before signing and consider whether you are able to comply with all conditions.
You have nothing at the end
Perhaps the biggest disadvantage of operational leasing is that you have nothing after the contract ends. Neither the car nor the money from its eventual sale (as would be the case with your own car). So you start from scratch again. You are looking for a new car and dealing with whether to take a classic lease, an operational lease, borrow for a new one – or cycle.
Birne offers a wide range of vehicles
If you choose operational leasing, another disadvantage arises from the fact that you are limited by the offer. You cannot dream of any car, but you must choose one of those available from the leasing company. Fortunately, at Birne, you will find cars of many brands (Škoda, Audi, Volkswagen, Fiat, Hyundai, Opel, Kia, Mazda, Peugeot, Volvo, Seat...), with various powertrains and diverse equipment. And if you have a specific idea, we might be able to find you the car of your dreams.
Additional fees
Another disadvantage is additional surcharges and fees for various repairs or additional services. The price of operational leasing usually includes some basic services, such as mandatory liability insurance, comprehensive insurance, glass insurance, car assistance, or manufacturer-prescribed service. However, if you want additional services and benefits, you will have to pay extra for them.
The basic monthly amount can thus increase by hundreds to thousands of crowns. If something happens to the car that is not covered by basic services, the costs will again come out of your pocket. Many leasing companies also try to charge you for every scratch on the paint when returning the car.
Birne is fair
At Birne, we are fair in this regard – minor damage coverage upon car return is up to CZK 5,000. If you pay extra, minor damage coverage extends to various damages up to CZK 10,000.
Choosing the right partner
Many companies specializing in operational leasing operate on the market. Therefore, it is necessary to look for reviews and feedback from their clients and be guided by the reputation of the given company. You can easily come across one that will try to skin you alive, and its promised benefits will quickly disappear.
Therefore, inquire about the quality of customer service, the conditions, restrictions, and everything that is included in the price. Do not hesitate to ask anything you are interested in, and only then sign the contract.
Birne your choice for operational leasing
At Birne, you will never be disappointed, and we guarantee first-class service. We are your partner on the road.
We will also save you the worries of what to do after the end of your operational leasing contract. You can choose our Try and Buy service, where you rent a car for six months and then either switch to classic operational leasing, return it – or buy it at a significant discount. And we also operate a flexible car rental service that pays off for short-term car rental.
