01 december 2011
New lease car compared to a rental car by the monthly expenses
For comparison purposes lets use a Ford Fiesta as an example. Long term hire of such car costs between 420 and 450 euro/month. The same lease car however costs about 200 euro/month with a 5 year leasing contract. If you think that's all your lease car costs on a monthly basis, you are mistaken. Let's not forget the inital payment of about 2000 euro, as well as the 500 euro afterpayment according to the latest leasing contracts. Then we have to add the mandatory car insurance in the ammount of 700 euro/year (the insurance cost decreases with each passing year and reaches about 600 euro for the 5th year). Lets add the ammoutn of 650 euro/year as an average insurance price for the whole period. Let's not forget the mandatory 140 euro/year state fund insurace, as well as the 225 euro/year service costs for oil and filter changes (150 euro/change 1-2 times a year). So far the yearly cost of a lease car has gone up by another (2000 + 500) / 5 + 650 + 140 + 225 = 1515 euro. To continue, let's add the costs for four winter/summer tires, as well as periodic changes of weared out/flat tires. Depending on tire make and model the costs vary betrween 1000 and 2000 euro thus increasing the yearly costs with an average of 300 euro to 1815 euro/year. So far the monthly expenses for a lease car have gone up to 351 euro. As you can already see we have come dangerously close to the 420 euro/month rental car costs and we are still in the middle of the expenses list. When we add the various state taxes and yearly fees, as well as the expenses for repairs and workshop visits even during the guarantee period (not all problems and damages are covered by the standard insurance), etc, you can see the difference in the monthly expenses shrinking to an almost negligible ammount of money. To wrap things up, with your lease car you have all the trouble of maintanance and workshop visits, in order to be able to call it your own after the 5th year of amortization. As far as your rental car is concerned, each year you have the pleasure of driving a brand new car with the benefit of free professional maintanance done by the car rental company.