Car loan vs. leasing: what is really cheaper?

The key difference

With a car loan you buy the vehicle and finance the purchase price. With leasing you use the car against a monthly instalment without (immediately) becoming the owner. Which option fits depends on usage, mileage and your goals.

When a car loan is often the better choice

• You want to keep the car long term

• High annual mileage

• Desire for free use without leasing restrictions

• You want to be the unencumbered owner after repayment

With a purpose-tied or unrestricted personal loan you stay flexible.

When leasing can make sense

• You change vehicles regularly

• A predictable instalment on a new car is the priority

• Service packages are included in the offer

Caution: extra kilometres, damage and the end of the contract can cost extra. Calculate the total costs over the full term.

Practical tip from Mutuo

Do not compare the monthly instalment alone. Include the down payment, interest, insurance, maintenance and the value at the end of the term. Our team helps you calculate a realistic, affordable instalment.