Comparator
Rental, purchase or leasing: what does the car really cost you?
Compare the three options over the same period, with all costs: monthly payment, insurance, maintenance, road tax, interest and depreciation. Transparent result, adjustable parameters.
2. The result
Net cost = all outgoings over the period minus the value of the car you keep at the end. Fuel excluded as it is the same in all cases. Indicative figures, based on the stated assumptions: they do not constitute an offer. For the tax aspects of professionals and companies, deductibility follows different rules for each option under current legislation: check with your accountant.
The full comparison
Beyond price: what really differs between the three options
| Purchase | Leasing | Long-term rental | |
|---|---|---|---|
| Who owns the car | Yours from the start | The leasing company's; it becomes yours if you exercise the balloon payment | The rental company's: you use it, with no ownership worries |
| Upfront outlay | The full price, or the finance deposit | Deposit, often substantial | Even zero deposit |
| What the monthly payment covers | Only the finance capital and interest | Only the finance monthly fee | Car and main services: third-party insurance, maintenance, assistance, vehicle tax |
| Risk on future value | Yours: if the car is worth less, you lose out | Yours, if you exercise the balloon payment | The rental company's |
| Breakdowns and extraordinary maintenance | At your expense, after the warranty | At your expense | Included in the monthly fee |
| Admin and paperwork | You handle insurance, vehicle tax, services and claims | You handle them | A single point of contact |
| Kilometres | No limit | No limit | Agreed in the contract; any extra is paid separately |
| Customisations | Unrestricted | Limited by the contract | Limited by the contract |
| At the end of the term | Keep the car or resell it (time, negotiation, uncertain price) | Exercise the balloon payment or return it | Hand it back and choose a new car |
| Early exit | You can sell whenever you want, at the market price | With penalties | With early termination penalties |
| Professionals and businesses | Deductibility and VAT follow different rules for each option, in line with current legislation: assess your situation with your accountant. | ||
In summary
When each option makes sense
Long-term rental
- Want to know today what you'll pay each month, down to the last
- You change car every 3-5 years and always want to drive a recent model
- You prefer to keep cash for your home, family or business
- You don't want the risk of breakdowns, resale and future value
- You drive a predictable mileage
Buying
- You keep the car for many years, over 7-8
- You drive very high or unpredictable mileages
- You want to customise it freely
- You have cash you don't need elsewhere
Leasing
- You want to become the owner at the end, with payments spread out
- You're a professional or a business and the buyout fits your plans
- You handle insurance and maintenance yourself
Frequently asked questions
Is long-term rental always better than buying?
No, it depends on how long you keep the car, how many miles you drive and what the car is worth at the end. The comparator shows this transparently: rental is often more advantageous for those who change car every 3-5 years, want certain costs and don't want to tie up cash; buying can suit those who keep the car for a very long time.
Why does the car's residual value matter in the comparison?
Because whoever buys ends up owning a car that still has a value, but doesn't know for certain what it is. The comparator deducts it from the costs and shows how much the result changes if the car is worth less than expected: with rental this risk belongs to the rental company.
What does "lost return on capital" mean?
If you pay for the car in cash, that money is no longer available for anything else: for example it doesn't earn in a prudent investment or doesn't fund your business. The comparator estimates this cost using the return you enter; you can exclude it with one click.
What's the difference between leasing and long-term rental?
Leasing is a financial instrument geared towards the buyout: you pay for the asset and at the end you can become its owner, while insurance and maintenance remain your responsibility. Long-term rental is a mobility service: the monthly fee includes the car and the main services and at the end you hand it back.
Are the results an offer?
No, they're an estimate based on the assumptions shown, all of which can be changed. For a real monthly fee, choose a RentalZone offer in the comparator or request a free, no-obligation quote.