Car Leasing in Sweden: A Guide For Expats

Car leasing is becoming popular in Sweden. It’s a great solution for expats who want to stay flexible while living in this Nordic country. However, before you visit the next-door car dealership and pick up your car, you should know some crucial information about the car lease in Sweden.

In Sweden, the average monthly leasing rates range from 3,000 SEK to 5,500 SEK per month. Leasing a car is more expensive than purchasing it. To lease a car in Sweden, you will need to pass a credit check as well as to have a valid driving license, income source, and ID.

Depending on the company, you can get a lease car in Sweden with or without a downpayment. Before signing a lease agreement, go through the rules and the requirements for drivers in Sweden. Keep in mind that you can drive with a foreign driving license for only up to 12 months. Read more about the car lease and its pros and cons in this article.

How much does it cost to lease a car in Sweden?

A lease of a simple car will cost you about 3,000 SEK (289 USD) per month. This price is on the cheaper side; you can come across higher rates. Moreover, you will need to add the costs of owning a car, such as fuel, taxes, and insurance. Therefore, the total amount comes to about 6,000 SEK (579 USD) per month.

For example, you can get a Volvo for 523 USD per month and a Skoda Superb for 361 USD monthly.

Leasing a car costs about 10% more than buying a new car through a car loan. On the other hand, private leasing doesn’t require a cash investment, which many people aren’t ready for.

Here is an example of the leasing calculation for a car that costs 350,000 SEK for a leasing period of 3 years:

  • 70,000 SEK special leasing fee (20%)
  • 140,000 SEK residual value (40%)
  • 4.74% variable interest rate
  • Installation costs of 650 SEK and notice fees of 45 SEK

That brings a monthly price of 4,725 SEK (456 USD) per month, excluding VAT. As you can see, leasing a decent car in Sweden isn’t particularly cheap.

At the same time, lower priced cars like Peugeot 208 price of which is 184,900 SEK for a new model, will cost you only 2,199 SEK/month to lease.

Cost of leasing an electric car in Sweden

Electric cars allow you to save on petrol, but they are more expensive to buy & lease. An example of a typical leasing price for an electric vehicle that costs 500,000 SEK with a leasing period of 36 months:

  • 100,000 SEK cash deposit (20%)
  • 250,000 SEK residual value (50%)
  • 4.19% variable interest rate
  • Installation costs of 650 SEK and notice fees of 45 SEK

The final price of leasing this type of car is 5,311 SEK per month, excluding VAT.

When leasing a car in Sweden, you will also be responsible for additional costs:

  • Fuel
  • Car wash and other routine procedures
  • Road tax
  • Parking fees
  • Car service and maintenance
  • Congestion tax
  • Part replacement
  • Winter tires

Keep in mind that mileage is capped at about 1,500 miles per year. You may pay an additional 15 – 20 SEK per mile if you exceed the limit.

Renting a car is even more expensive than leasing. Yet, you will get the best deal when purchasing the vehicle, whether it’s a loan or buying with cash.

The cost of car leasing in Sweden varies with the car model, car value, interest rate, mileage, and lease period. Other factors that play a role in the final price are your age, taxes, insurance, and fuel.

With an average leasing monthly rate of 300-450 USD per month, you pay about 48 USD per day for a rented car. In that case, a car lease makes much more sense.

Nonetheless, you must qualify for a lease in the first place. That includes having a good credit score, regular income, and a foreign driver’s license that you can later exchange on Swedish.

The hint with car leases in Sweden is that the typical lease period is usually three years. A foreigner may drive in Sweden with a foreign license but only for up to 12 months. After that, it must be exchanged on a Swedish license.

How complicated the exchange process is will depend on the country of origin of your driver’s license.  

Cost of leasing vs buying a car in Sweden

What is cheaper, buying or leasing a car? Below is the comparison of costs when buying vs leasing a car in Sweden:

Leasing a carBuying a car
Tax and insurance
Insurance3,600 SEK/year3,600 SEK/year
Vehicle tax2,574 SEK/year2,574 SEK/year
WarrantyYesYes
Service costsIncluded3,600 SEK/year
Leasing fee 2,199 SEK/month
Deposit at least 20%31,980 SEK
Loan amount127,920 SEK
Interest and amortization1,722 SEK/month
Interest deduction1,700 SEK/year
Limit on mileage1,500 miles/yearNo
Fixed costs per month2,713 SEK2,835 SEK
Variable costs per year
Petrol11,340 SEK11,340 SEK
Inspection167 SEK167 SEK
Oil, etc.2,200 SEK2,200 SEK
Parking6,000 SEK6,000 SEK
Total variable costs per year19,707 SEK19,707 SEK
Total cost per month4,364 SEK (421 USD)4,475 SEK (432 USD)
Source: tidochpengar.se

Consequently, leasing a car in Sweden costs approximately the same as buying a vehicle. The only difference is that you can sell a car later and get some money back, which isn’t possible with a leased car.

Buying vs leasing a car in Sweden: what is better?

Many car drivers have this difficult choice of buying vs leasing a car in Sweden. Car lease is pretty affordable in this country if you look at the prices of new vehicles and taxes. So what option is better for your daily commute in Sweden?

Car leasing in Sweden usually lasts 36 months. After that period, you can return the car or extend the contract. You can lease a vehicle through many car companies in Sweden. Each company has its assortment of cars with different prices and terms.

What is private car leasing?

Leasing a car is effectively renting a car for a longer period. A car lease is an agreement between you and a car dealer where you state a lease duration, mileage, insurance premium, service agreement, and monthly cost.

The monthly cost depends on the price of the car, the residual value, the leasing period, and whether the interest rate is fixed or variable.

If you use the car for a different purpose than agreed on, drive more miles or expose the vehicle to “excessive wear and tear,” you may have to pay extra. After the term ends, you should return the car to the dealer.

What is included in the lease?

The benefit of leasing is that you will get some additional perks included in the rate. For instance, the following items are often included in the car lease agreement in Sweden:

  • Liability and comprehensive insurance
  • Service
  • Roadside assistance
  • Summer and winter tires
  • Extra driver

Consequently, you can save a significant amount on car insurance, for example.

Mileage for leased cars

When you sign a private lease, you will agree on a certain mileage, which is usually 1,500 miles/per year. Exceeding this limit means you will pay extra.

Pros of leasing the car in Sweden

  1. Convenience: You don’t have to own the car; if something goes wrong, getting it repaired is usually included in the lease agreement.
  2. Try different cars: When you lease a car, you can quickly get various vehicles you wish to try. Leasing helps you experience different cars without the stress of seeking a buyer for your previous vehicle.
  3. Insurance: You will get vehicle insurance together with a leased car. Moreover, the price of insurance for a leased car is the same as for a regular car.
  4. No upfront payment: You don’t have to pay a large cash deposit to get the car. The only costs you face when initially leasing a car are the monthly rate and, eventually, a small security deposit.
  5. You can buy the car after a lease agreement: Once you’ve decided you want to purchase a leased car, it’s easy to negotiate terms with the company.
  6. Low monthly payments: Leasing requires no or little down payment, unlike purchasing a car, where you also need to pay for the entire car price. Monthly lease payments are meant to cover rent and tax costs during the lease period making it cheaper to lease. 
  7. Easy transfer: You don’t have to stick to one car that doesn’t please you; you can change the car if company terms allow it.
  8. Depreciation cover: Cars depreciate faster once you buy them. Leasing shields you from this. You don’t have to worry about the loss of value if you want to sell it. 

Cons of leasing the car

Leasing isn’t the best option for everyone. It costs you about 10% more than purchasing the vehicle and quickly can become a much more expensive deal if you break any rules in your lease contract. 

  1. High price: Leasing is more expensive than buying a car with a loan or cash. Financially, you will be better off taking a loan for a car.
  2. Commitment: A typical lease period in Sweden is 3 years.
  3. Expensive to terminate the agreement early.
  4. No ownership: One of the main disadvantages of a car lease is the absence of ownership. You will need to return the car after the contract ends.
  5. Usage restrictions: Lease companies impose several restrictions on customers, including a cap on the miles you can drive per year. When you cross the agreement limit, you’re charged additional fees.
  6. Repair costs: Because you’ve leased a car, it doesn’t mean you’ll not repair any damages caused to the vehicle during the agreement period. Service of some issues will be covered by a leasing company, yet, many damages and wear should be covered by the customer.

Drawing a line between buying or leasing a car takes time and effort. Buying could be the right deal for you if:

  • You don’t want a mileage limit
  • You want to own a car
  • You’d like to modify your car
  • You’d like to have the vehicle for an extended period
  • Your finances can allow you to service car ownership costs

 A car lease could be the right option if:

  • You wish to change cars regularly, especially 2 – 3 years
  • You don’t want to worry about depreciation
  • You’d expect to reduce car maintenance costs
  • You want to keep your monthly payments low

Generally, financing a car is cheaper. Yet, if you’re looking for simple car use and don’t want to invest much money, leasing can be an excellent solution. 

When you purchase a vehicle, it’s difficult to calculate how much it will be worth on the day you sell it. With leasing, costs are more predictable, and you don’t have to worry about selling a car in the end.

Requirements to lease a car in Sweden

To lease a car, you must be officially employed and provide a set of documents to the car dealer, some of which include the following:

  • Driver’s license (foreign or Swedish)
  • Information about your employment and salary
  • Credit check
  • Passport or ID
  • Insurance certificate
  • Proof of registration
  • Warning triangle

Best car leasing websites and companies in Sweden

In Sweden, there are several websites and companies offering car leasing services. We have outlined the best options for expats.

1. Carplus.se

Carplus is the number one place if you are looking for private leasing deals in Sweden.

It allows you to lease a car at affordable rates. You have the option to lease new or used vehicles. On their website, you can choose a car model, gearbox (manual or automatic), color, and, of course, the car brand.

Once you’ve booked a vehicle with Carplus, a representative contacts you to make a lease agreement and delivery of your car. Their monthly rate includes insurance, service, warranty, and roadside assistance.

2. GoMore.se

A Swedish company GoMore offers car leases and rentals for as low as 3,995 SEK per month. With GoMore, you don’t have to agree with a three-year-long leasing period; they have shorter terms, e.g., 24 months. Car insurance is also included in the leasing plan.

The significant advantage of this provider is that they have the English version of a website. Besides, they provide some of the most affordable electric cars in the market.

3. ExpatRide.com

ExpatRide comes in handy mainly for foreigners living in Sweden. ExpatRide offers car leases with a period from 12 months in all Swedish cities. Their monthly lease payments include insurance and roadside assistance. 24 hrs customer support is also included in the cost. 

ExpatRide offers only Volvo cars in Sweden, which they can deliver between 2 – 7 months after request. They’ll provide you with a rental car as you wait for the requested car.

4. LeasePlan.com

LeasePlan offers competitive prices for private and business leasing. They have a variety of vehicles, including electric cars. Car leasing with LeasePlan is simple; you log into their website and choose a car you want. 

Besides, you can do all the paperwork online and, after that, simply pick up your car. LeasePlan monthly fee covers the following costs:

  • Insurance
  • Maintenance
  • Approved tires
  • Driver support
  • Damage management

5. Bytbil.com

Bytbil is a Swedish website that connects you to many car dealers and leasing companies across the country, allowing you to compare prices for different cars. With Bytbil, you have a large selection of EV, hybrid, and fuel vehicles.

On the website, you can select the car make and model, fuel type, and pick-up city. The selection will give you a list of the best prices available.  

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