Car lease calculator

• Both leasing and a car loan mean you enter into a long-term agreement. You will pay interest during the term of the agreement in both cases. However, the interest rates on leases are often lower than on loans.

• When leasing, you usually need full casco insurance. If you buy your own car with a loan, this does not apply.

• Insurance premiums are generally higher for leased cars than for non-leased ones – especially for young drivers. You can find out exactly how much you would pay by comparing premuims.

Pros:

• Interest rates for leasing are comparatively low.

• Leasing gives you flexibility. At the end of the contract term, you usually have three options:

  1. You can buy your car for the agreed residual value.

  2. You arrange a new lease and get a new car.

  3. If you don't need a car, you can simply return it.

• There are no high acquisition costs at the beginning. The up-front charges may be lower than for a loan. This gives you easy access to the latest models.

Cons:

• A change of keeper is not possible. Depending on the contract, you may not lend the car to third parties.

• You must take the car in for maintenance and inspection checks as stipulated. The leasing parties prescribe which garage you must take the car to for servicing.

• If any damage you have caused to the vehicle is found at the end of the lease, you will be required to pay for it.

• The number of kilometers you can drive is regulated by the contract. If you drive more, you pay for the extra miles at the end of the contract.

• Ending a car lease early is very costly.

• Individuals cannot deduct lease interest from their taxable income.

Pros:

• The car is yours right from the start. You can sell it or change the keeper. There is also no mileage limit.

• You can end the loan by repaying it early.

• You are free to choose your own car insurance.

• Service and repairs can be carried out at any garage.

• The interest on your debt can be deducted from your taxable income.

Cons:

• In general, the interest rates are significantly higher than with a lease.

• If after a few years you need a new car, you have to consider a high loss in value when selling the old vehicle.

• To keep the monthly instalments low, a downpayment is required. This can be expensive in the beginning, especially with a new car. The reason is that when buying a car, you pay the total value at the beginning.