DECISION GUIDE
Leasing or finance?
Start with your goal.
Do you want to use a vehicle for a set time or finance its purchase? This sets the direction. The decision depends on the actual offer and your total costs.
| Decision factor | Leasing | Finance |
|---|---|---|
| Your goal | You use a vehicle for an agreed period. | You finance the purchase of a vehicle. |
| Ownership | The vehicle generally remains the leasing company's property. | Security and transfer of ownership depend on the credit agreement. |
| Monthly commitment | Lease payment plus running costs; include initial payment and additional fees. | Loan payment plus running costs; plan the deposit and any final payment. |
| Contract end | Usually return of the vehicle. Purchase options or extensions require agreement. | Payments end once the loan is repaid. You must be able to cover any final payment. |
| Mileage and condition | Mileage and return conditions can result in extra costs. | Mileage and condition affect your vehicle's value. |
| What to look for | Total costs, included services, excess mileage, return and early termination. | APR, total payable, final payment, security and repayment conditions. |
OFFER CHECKLIST
Questions before
you sign.
Compare offers for the same vehicle and term, using the same price basis. A monthly payment alone is not enough.
- What is the combined cost of the deposit or initial payment, instalments and one-off fees?
- What additional costs arise for insurance, registration, maintenance and use?
- Is there a final payment, mileage settlement or return charge?
- Which services are included and which are explicitly excluded?
- What happens with early termination, accident damage or a change of use?
- Who is your contracting party and who decides on finance?
Understand leasing in detail.
Understand contract parameters and calculate the full-term costs of your offer.
Prepare your vehicle purchase.
Describe your plans and learn what information is needed for an enquiry.
Source: ADAC: leasing or finance (German). General guidance; the relevant contract terms take precedence.
MAKE YOUR DECISION CONCRETE
What the vehicle needs to do.
And what your business needs.
For a single vehicle, start with the right class. For several company cars, consider shared rules, a common replacement date or different usage profiles.