Here’s how to calculate your financial lease amount

Leasing a car is popular among business owners. You purchase a car without spending a large amount of money all at once. Financial leasing, in particular, is an option that is gaining traction. You own the car and pay off in installments. At the end of the term, the car is really yours. This offers freedom, but it also comes with questions. How do you calculate what amount you need to pay monthly. What classes exist and what to expect within them. In this article we will help you on your way.

Chart your costs

Are you going to calculate your financial lease? Then it’s smart to know your total cost. Consider the purchase price, interest rate and term. Also see if you want to make a down payment or not. A down payment lowers your monthly costs. In addition to these basic amounts, there are other costs, such as road tax or maintenance. You pay these yourself because you are the owner. Set a budget in advance. This will prevent you from choosing an overpriced car you can’t afford. Do you already have another loan? Then check whether there is room for this new monthly amount. A good understanding prevents financial stress.

The choice of financial lease

Financial lease differs from operational lease. Namely, you are direct economic owner. This means that you can depreciate the car. At the end you have paid off the car in full and you are also the legal owner. You often choose a term between 12 and 60 months. If you choose a shorter term, you pay more per month, but you’re done sooner. With a longer term, the monthly costs are lower, but you are bound to the lease terms for longer. Look carefully to see which situation suits your business best.

What classes can you consider?

Generally, cars come in different price ranges. Think small city cars (class A or B) like a Peugeot 108 to larger mid-size cars (class C) like a Volkswagen Golf. There is also the luxury category (class D and E) with cars like a Tesla Model Y. The question is which type you need. For a representative, a comfortable car is nice. A self-employed person who only makes short trips will be fine with a smaller class such as a Volkswagen Polo. An indication of your monthly amount can be obtained by dividing the list price by the term and adding the interest. Of course, service and brand also affect the price. But roughly this will give you a first impression. Look for a car that fits your budget and needs.

Tips for making the right decision

Look not only at the monthly cost, but also at additional taxes if you use the car privately. Also consider possible maintenance costs. A newer car requires less maintenance, but is often more expensive to purchase. A young used car can be a nice middle ground. Consider what options you really need. That way you can save heavily. It’s tempting to go for a car with all kinds of extras. But every option counts toward your lease amount. Do you plan to use the car regularly for long distances? Then a fuel-efficient engine is a smart choice. You save fuel costs and spare the environment.

Here’s how to do it

Start with a wish list. Determine your budget and think about the term. Estimate your mileage usage. Compare different providers and cars. Look at interest rates, terms and any additional fees. Use online tools or request a quote. This will give you a quick picture of the monthly costs. Do you have everything clear? Then you can step into the showroom or order online with confidence. Financial lease can be a pleasant way to finance a car, provided you choose a car that fits your financial situation. That way you can drive without any headaches and be the proud owner in the long run.