How much does car leasing cost for a private individual?
Alongside long-term rental and a loan, leasing is one of the most frequently chosen alternatives to buying a car with cash. Although most lessees are business owners, it is increasingly being chosen by private individuals too. Find out how much car leasing costs privately, what affects it and what additional charges may come with it.
How does leasing for private individuals work and what is it?
Also called personal or consumer leasing, it combines the features of a loan and long-term rental. The contract is concluded between the lessee (the user) and the lessor (the financing party). This can be a manufacturer of new cars, a bank, or a company financing used cars. That's right! These days you can just as easily come across cars available second-hand. Drivers value these options thanks to the easy and quick process of signing the contract. What's more, offers for used cars have an additional advantage in the form of an exceptionally low cost of leasing.
How does leasing differ from a loan?
First and foremost in that, throughout the term of the contract, even though the lessee uses the car, it remains the property of the lessor. For this reason, no modifications can be made to the car, and you have to take care of its proper technical condition regardless. It is also a form of security for the owner, not for the driver. When calculating the third-party liability (OC) premium, the lessee's insurance history will not be taken into account. Nonetheless, apart from paying the basic cost of leasing, you can additionally purchase comprehensive (AC) or Assistance cover, which will help you avoid the charges related to repairing damage caused by an accident or a collision.
How much is a car lease instalment?
Instalments are one of the components of the total cost of leasing, i.e. the sum of all charges directly connected with it, above all the initial payment and the monthly instalments. It is good practice to factor in the buyout price at the end of the contract already when signing it,that's exactly the solution we propose at Car&More. So then, how much is a car lease instalment?Its price is determined by the value of the car and the amount of the remaining charges, a more expensive vehicle and a lower initial payment usually mean higher monthly instalments.
How can you reduce the costs of a car lease? An effective way is to choose a second-hand car, which is usually cheaper than its brand-new equivalent, yet does not have to fall short of it in quality. On Car&More you will find offers only from authorised dealers. This means they have all undergone a thorough inspection.
The total cost of leasing
As already mentioned, it is the sum of all charges related to this form of using a car. How do you calculate the total cost of leasing? For this purpose, let's use a practical example:
The value of a 2021 Skoda Octavia available in the Car&More offer is PLN 95,687. Signing a 60-month contract and paying a 15-percent initial payment (PLN 14,353) means that each monthly instalment will amount to PLN 1,463. Multiplying the latter value by the term of the contract and adding the initial payment, the total cost of leasing will amount to PLN 102,133, i.e. 107% of the vehicle's price (net).
Wondering how much a car on lease costs, compared to taking it on a loan?The price of each of them may differ depending on the offer,as a rule, neither is more expensive or cheaper than the other.
The advantage of a loan is that once the contract is signed, the car becomes the customer's property and they can do whatever they like with it. On the other hand, consumer leasing ensures exceptional flexibility. You can set the amount of the individual costs making up the cost of leasing yourself, as well as the length of use. What's more, once the contract ends, the car can be bought out or exchanged for a different model.
At Car&More we offer both the leasing of passenger cars and loan financing: check out our financing options.
How can you lower the amount of the lease instalment?
Many people believe that consumer leasing is a relatively expensive solution. That's not true! In this case you have various ways to adjust the amount of the monthly instalment. Want to save? For people who are set on returning the car, one solution may be so-called leasing with a high buyout. The initial costs are significantly reduced, and the monthly instalment itself is smaller. This does, however, come with a higher price if you want to buy the car out. For people who want to commit to the vehicle only for the term of the lease contract, it may nonetheless turn out to be the most attractive solution.
Additional costs: third-party liability insurance (OC), Assistance, inspections
The advantage of leasing is that, along with buying the car, you can immediately take care of all future, additional costs. Car&More works with trusted insurance companies, so you can buy a policy conveniently and at a bargain price.
The costs of a car lease include a one-year warranty, but there is also the option of purchasing a service and Assistance package, thanks to which the insurer will pay for future repairs or towing.
A comprehensive approach to car servicing and the low costs of leasing make driving a used car from Car&More really pay off. If you care about the highest quality from authorised dealers, flexible financing and handling all the formalities online, go for the convenience and low costs of a car lease with Car&More!