• Leasing option
• Buying a new car
• Where to find car dealers
• A test drive
• Buying a second-hand car

Banking and insurance multinational ABN Amro is one of the big companies in the Netherlands that has a special arrangement for its short-term expats.

The bank has a special "pool" of cars from workers who left the bank before the term of the lease period expired. These cars are offered to expats staying in the Netherlands for just a few months, an ABN spokeswoman says.

But for longer-term expats, ABN Amro — and other companies such as UPC and Philips — does not have a special arrangement for lease cars. Instead, there is one system for all workers, local and expat.

Can you lease through your employer?

The advantage for expats is that they receive a good car for both professional and private use, while fuel costs are included. Expats might be given a domestic fuel card or one that can be used across Europe.

But 22 percent of the car's catalogue value will be added to an employee's taxable salary, leading to higher tax charges.
 
Dutch cable company UPC was tight-lipped about the company policy when contacted, but admitted there is no special arrangement regarding lease cars for expats. UPC considers the matter an in-house issue.

But a spokesman said employees and employers can discuss a package of benefits and the final deal may include a lease car.

Remember to raise the possibility of a lease car when discussing the terms of employment. Afterwards could be too late.

The Dutch motorists' association ANWB is a good place to start when thinking of buying a car.

The ANWB warns all would-be car buyers: once you have signed an agreement, it is not easy to pull out of the deal. You might have to pay an annulment fee of around 15 percent of the purchase price to companies registered with the branch industry association BOVAG if you do.

The ANWB/BOVAG quotations list allows you to compare car prices for vehicles made from 1997 onwards. ANWB members can access the list from the website and search for the catalogue price of various cars and models. Non-members can buy it in book form — updated every two months — from ANWB shops for EUR 10.50.

Buyers should always ask about warranties and to agree on a delivery date for your new vehicle.

If you buy a new car from a licensed dealer, the seller is obligated to register the car under your name and you will then receive a bill for road taxes.

Cars might appear more expensive in the Netherlands than elsewhere because of the taxes. But for those who buy and then sell a car here, the BPM motor vehicle tax is negated because it is included the initial purchase and resale prices.

For advice and information, contact the ANWB on 0800 0503 or see their website www.anwb.nl. Some information is restricted to members only. For tax inquiries, contact the tax office on 0800 0749. The general tax website is www.belastingdienst.nl

The website of the industry association BOVAG offers a list of registered dealers divided by region, place and/or type of vehicle.

The search results are graded on the relevancy of your criteria and only dealerships that have met BOVAG's stringent requirements are registered. The companies are regularly audited every few years.

Buying from a registered dealer can help prevent problems

Nevertheless, an ANWB spokeswoman advised buyers to be cautious as things can still go amiss. If you don't trust the garage, don't buy the car.

Buyers are advised to lodge any complaint initially with the dealer in question and if no solution is reached, the complaint can then be taken to BOVAG.

BOVAG's mediation department tries to forge an agreement between the two parties — attempts which almost always succeed. If not, the complaint is taken to an independent arbitration committee in The Hague.

Besides BOVAG, there are other places to search for car dealers. These include autotrack.nl and newspaper De Telegraaf also has a comprehensive motor vehicles section, found online at autotelegraaf.nl. Other good places are autokopen.nl and auto.pagina.nl.

Major car dealerships are often grouped together near the main cities in the Netherlands. We went to Forepark business estate at the intersection of the A4 and A12 motorways near The Hague.

To get there, take exit 8 on the Amsterdam bound-lanes of the A4 or exit 5 on the A12 coming from Utrecht. With many showrooms located on one street, you can begin by window shopping for your dream car.

Two out of three dealers contacted at Forepark were prepared to offer a test drive within 24 hours. BMW was also willing to help, but said it needed a couple of weeks' notice. On the day of the test drives, the dealers were generally welcoming and friendly.

Expatica arranged to test a Jaguar X-Type at the Jaguar Regional Centrum Blankespoor BV (Tel: 070 357 5717). The diesel five-door sports sedan drove superbly with excellent acceleration and reliable stability on the freeway. It was a real luxury cat which practically urges you to hit the accelerator.

Its price tag was affordable, given that some Jags were priced in excess of EUR 110,000. The X-Type 2.0D was EUR 34,900 inclusive BTW. It comes with CD player, air conditioning, electric windows and low and almost convertible-like seats.

A relatively roomy sedan with a plush interior and wooden dash fittings., the 2.0D's diesel engine cuts down on the infamous Jag fuel costs.

But the X-Type is not the best family option, being more suited to an owner who is single and young at heart or to a double-income couple with no children.

The second car Expatica test drove was at Volvo Niham Personenauto BV (Tel: 070 315 3333). They offered us a V50 2.0D Momentum station wagon to test drive. This roomy Volvo  felt safer than the Jaguar and more solid on the often chaotic Dutch motorway. It was a tad sluggish, but this was hardly unexpected; we were comparing a Jag with a Volvo after all.

Priced at EUR 34,315 inclusive BTW, the Volvo is not exorbitant and would serve as a reliable, hard-working family vehicle. The six gears V50 had ample power to appease this reporter's still youthful wish for acceleration. Being a diesel though, the fuel costs will be a boon in the family's pocket.

The position of the reverse gear in the top left-hand corner was a cause of some annoyance, with this motorist preferring it to be in the bottom right-hand corner. The interior was well laid out with a range of mod-cons: CD, air conditioner and electric windows. The grey interior was somewhat dull. There was ample room in the station wagon boot.

My Dutch girlfriend and I bought a second-hand car from a licensed dealer mid-2001 and have had few problems. It has served us well and still does.

Prepared to spend NLG 10,000 (about EUR 4,500), we decided to go for a diesel because of the large distance between my work and home. The tax is expensive for a diesel car, but in comparison with petrol fuel costs, it worked out cheaper.

After visiting several garages, we found a 1994 Peugeot 306 for NLG 9,000. Satisfied after a test drive, we decided to buy it because it came with an APK, which is legally required every year for cars older than three years.

But I accepted advice from my Dutch family that I did not need to have the car totally inspected before buying it, despite the fact that the ANWB advises getting a thorough inspection.

Relatively new to the Netherlands, I was assured that an APK certificate — which is given by registered garages and the Road Traffic and Transport Authority (RDW) — was sufficient.

I later learned that it only tests safety and compliance to environmental regulations. Nevertheless, you should always buy a car with an APK certificate.

A total inspection grades the car on possible future upkeep and maintenance costs to do with the engine or gearbox etc. Furthermore, the ANWB is independent and has a long history of carrying out total inspections.

Fortunately, the lack of an inspection did not cause too many problems in our case, but it could have detected a problem with the fuel tank, which had a slight leak that caused fuel to drip onto the car's dynamo.

Three replacement dynamos later — the first of which was supplied by the dealer within the three-month guarantee issued at the time of purchase — and the problem was finally detected.

Had we conducted an inspection at the time of purchase, the dealer could have repaired the fuel tank cap and we would have been saved money and frustration.

At any rate, we paid an initial deposit and transferred the remaining amount the next day. The dealer then had the car registered in our name — which they are legally required to do — and we arranged to pay road tax.

Once the car is registered in your name, you can then take out insurance. The green card (proof of insurance) can be renewed automatically every year and the car must also undergo an annual APK inspection. 

For questions regarding the validity of your driver's licence in the Netherlands, please refer to Expatica's article: How to get a Dutch driver's licence.

[Copyright Expatica 2004]

Subject: buying a car in the Netherlands