How to find good leasing agreements

Compare car leasing agreements

Save with the leasing factor: How to find good leasing offers

The leasing factor makes it easier to compare leasing offers.

Gina Sanders – Fotolia, Erwin Wodicka –

By Timo Steinhaus

There are many leasing offers. But not all of them are real top deals. In order to be able to compare different providers, it is important to be able to draw on a value that is as objective as possible. The leasing factor helps here. We explain what lies behind it.

What is the rent factor?

You have decided on your dream car and you know that you want to lease the model. Now is the time to find the best deal. But it’s not that easy: there are almost an infinite number of providers who advertise with different conditions. For a meaningful comparison, you need an objective comparison value. This is where the leasing factor comes into play.

With the leasing factor, the conditions for a leasing offer can be assessed and compared. In short, it expresses how much car you get for one euro of the monthly lease rate. The monthly rate and the car’s gross list price are set in relation to this. You don’t need a doctorate in math to do the math: the monthly rate is divided by the vehicle’s list price and multiplied by a factor of 100. The lower the lease factor, the better the deal. For example, with a car list price of 30,000 euros and a leasing rate of 250 euros per month, calculate: 250 : 30,000 x 100 = 0.83.

Leasing factor: An example

Supplier 1 has a leasing car on offer with a leasing factor of 1.0. In this case, with this leasing contract you will also receive 1 euro of the value of the vehicle for 1 euro of the lease price, i.e. list price.

Provider 2 offers the same model with a leasing factor of 0.5. Under this contract, you will receive 1 : 0.5 = 2 euros of the vehicle’s value for 1 euro of leasing fee.

What to consider when comparing

The leasing rate is only objective if apples are not compared to oranges. The following must be observed:

  • The vehicles must be identical or at least the same vehicle class
  • Do not compare commercial and private leasing
  • The number of kilometers per years and the contract period of the tenders should be identical if possible
  • Special benefits such as supplementary insurance or benefits are not taken into account in the calculation
  • Any special payments must be taken into account

If it is a special service, the leasing factor is calculated by dividing the special service by the lease period. Add the result to the rate, divide it by the gross list price and multiply the result by 100.

The gross list price of your vehicle is 25,000 euros. The monthly lease rate is 200 euros plus a special payment of 1,000 euros. The contract runs for 24 months. Here is the bill:

1,000 euros (special payment) : 24 months (duration) + 200 euros (lease rate) : 25,000 euros (gross list price) x 100 = 0.96 (lease factor)
Important: You can also include transfer costs that dealers usually charge you in the lease factor calculation formula. But then you talk about the total cost factor, which no longer has to be compared with the leasing factor, since an objective assessment can no longer be guaranteed.

Which leasing factor is good?

The following rough classification helps with the question of how to evaluate the result:

  • 0.40 – 0.65: Excellent
  • 0.66 – 0.75: Very good
  • 0.76 – 0.99: Fixed
  • 1.00 – 1.29: Acceptable
  • From 1.30: This is better

Leasing offers up to a leasing factor of 0.65

1. Opel Astra: leasing factor 0.6

Gross list price: €29,800
Leasing rate: €179.90
Duration: 60 months

Special feature: It is a used car that can be delivered immediately.

2. Suzuki Vitara: rent factor 0.56

Gross list price: €26,650
Leasing rate: €149
Duration: 48 months

3. Citroën C3 Shine Puretech: leasing factor 0.6

Gross list price: €19,840
Leasing rate: €119.90
Duration: 24 months

4. Renault Koleos Techno TCe 160 EDC: leasing factor 0.64

Gross list price: €42,050
Leasing rate: €244
Duration: 60 months

5. Audi A3 2.0 TDI Cabriolet Sport: leasing factor 0.65

Gross list price: €42,050
Leasing rate: €244
Duration: 60 months

Special feature: It is a used car that can be delivered immediately.

Leasing factor: No ultimate comparison value

Many influences affect the leasing offers, which cannot be calculated precisely. You should therefore consider the leasing factor as a rough classification, but not make your decision dependent on this alone. When it comes to kilometer leasing, which is now standard, you also need to be aware of how many kilometers are included in the offer and how high the cost is per additional kilometer driven.

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