The leasing factor is now the established comparative value for leasing offers. This is how all major leasing portals use it to make special deals look objectively cheap. On deal sites it has long been the relevant code number for the users. In this article you will learn how to calculate the calculate leasing factor, what it is and how to interpret it. We also offer a convenient online calculator to.
Leasing factor online calculator
Calculate the factor of your offer with this calculator:
You need the following information:
- leasing rate
- car list price
- Special payment
Type the values from your leasing offer simply above to find out how good your offer is.
What is the leasing factor?
The leasing factor is probably not known at all to many people, because it is not communicated in the first place in common leasing offers. The information about the leasing rate or the special payment is much more important. This information is also important and, among other things, the corresponding factor is derived from it.
With the leasing factor, the customer has an indicator of how good an offer actually is, and can use this figure as a reference for comparison. Of course, there are many more details and the overall judgment about an offer should not be made solely on the basis of the factor, but it is a good indicator to take into account.
- Comparative value for offers by sober value and says..
- …how much car do i get per euro, which i pay monthly?
- Ideally one compares offers for the same car or at least the same vehicle class (z.B. BMW 3 series and audi A4).
- Also the services like KM / year (mileage) and special services like insurance or maintenance should be identical its.
- The comparison between private and commercial -is offered difficult, as commercial deals are usually more attractive
Guide video: watch video instead of reading long text:
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What does the factor mean?
If you were to ask me how I would describe the leasing factor in a single sentence, I would probably say the following: the leasing factor states how much car one per euro, that you pay monthly gets. It is therefore related to the actual value or. List price of the vehicle you want to lease.
In this respect, it is also the basis for calculating the monthly rate that the lessee has to pay. It is a percentage of how high the monthly leasing rate is for a certain model and certain conditions.
This makes it relatively easy to calculate the effect of additional equipment on the final rate. To put it simply, the higher the leasing factor, the higher the leasing rate in relation to the list price.
However, it must be said that from the customer’s point of view, the rate, term and so on are usually communicated directly. The customer often only gets to see this important information with the contract documents, unless he calculates the factor himself.
Calculation of the leasing factor
In order to calculate the leasing factor of an offer, it is sufficient to use a few details from the offer and a simple formula in which you can simply insert these values. Don’t worry extensive math skills are not necessary.
You need the following information:
- Leasing rate
- Vehicle list price
- Special payment
Formula for offers without down payment:
leasing factor formula without down payment.
Formula for offers with special payment:
Calculate leasing factor with down payment
The basic formula for the leasing factor divides the monthly costs (including the one-time costs like a special payment) by the list price of the vehicle and multiplies the value with 100. So it is a matter of putting the effective monthly costs in relation to the price of the vehicle.
The one-time costs must of course be broken down into the lease term. If you lease a car for 24 months and you have paid 2400 euros, the monthly cost is 100 euros. This 100 euro would be added to the monthly leasing rate.
It is also important to pay attention to the sales tax when calculating the leasing factor. Many business people lease their car with a view to the costs without vat. (net). In this case, you should not make the mistake of dividing the monthly costs by the gross list price, but should also use the net list price accordingly. It is always necessary to calculate with the same values and to consider what is given net and gross.
Example for calculation
For better understanding, we have set up a few example calculations to illustrate how the calculation works and what you have to pay attention to. Let’s take hypothetical offers for the same model.
Let’s assume you want a compact car for a gross list price of 34.500€ lease.
Provider no. 1 offers the car for 299€ leasing rate per month. In addition, there is a one-time payment of 2000€ and the term is 36 months.
Alt="leasing factor example invoice" width="300" height="90" />example calculation for offer #1
The factor of this offer is 1.03 and therefore the offer is in the solid range.
Supplier no. 2 offers the car for 179€ leasing rate per month. In addition, there is a one-time special payment of 4000 € and the term is 36 months.
Alt="invoice leasing factor quote 2" width="300" height="90" />calculation for offer #2
The factor of this offer is 0.84 and therefore the offer is in the good range.
Supplier no. 1 offers the car for 219€ leasing rate per month. The offer is without down payment and the term is 36 months.
Alt="example calculation for leasing factor" width="300" height="90" />calculation (example) for offer #3
The factor of this offer is 0.63, which puts the offer in the very good range. This is a real top deal!
Table for overview:
|#1||299 €||2000 €||36 months||1,03|
|#2||179 €||4000 €||36 months||0,84|
|#3||219 €||0 €||36 months||0,63|
These three offers are also common scenarios offered by dealers. Often a low rate is advertised, but a high down payment quickly makes the offer unattractive. Best are offers without down payment, because here the bill is much easier and you are not blinded by special good rates.
What is a good leasing factor?
The leasing factor is a very sober consideration of an offer. This factor does not allow a 100% general statement about how good an offer really is.
It is especially useful for comparing leasing offers that are very similar in terms of performance. Say if the mileage is the same and if the Included services like z.B. A maintenance package equivalent are. Ideally, you should also compare similar vehicle types and manufacturer with each other.
It simply shows that some manufacturers are fundamentally more expensive and others consistently make better offers. Also the construction of the vehicle plays a role. So special car types like the popular suvs tend to be more expensive than sedans.
Nevertheless, we have made a classification to give a rough framework of whether a leasing offer is good or rather less good. These assumptions apply to conventional offers without insurance and high KM payments.
Solid offer: greater than 1.0
Good offer: between 0.75 to 1.0
Very good offer: between 0.5 to 0.75
Absolute top offer: under 0,5
The lower the leasing factor is, the more attractive the leasing offer is!
Total cost factor – transfer costs, etc.
How often do you hear that there are many hidden costs in leasing. This criticism has to be accepted, at least in part, at one point. Time and again, there are offers that make a really good impression at first glance.
A short term for particularly favorable rates and the whole thing without down payment sounds great, but then you read something about the transfer costs. Sometimes also advertised as delivery costs or transport flat rate.
Often this moves between one-time 400 and 800 euros. But even here there are exceptions that like to take well over 1000 euros for delivery. Admittedly, these costs are also often set in relation to the car. So a VW polo will be significantly cheaper than a BMW 7 series.
If you calculate the leasing factor for a favorable offer, you might get a very good value. However, there is now the total cost factor, which could cloud the overall picture somewhat.
The total cost factor takes into account additional costs such as the transfer or other costs. These do not necessarily have to be negative, of course, because a maintenance package in the leasing contract can save you money in another place.
In order to to calculate total cost factor we extend the formula, we have used for the leasing factor with special payment. It looks then as follows:
Calculate total cost factor with this formula.
As you can see, for the total cost factor you also have to divide the one-time costs such as transfer costs by the term in months and add them to it. Then you divide everything again by the list price.
Compare with leasing factor
From the customer’s point of view, it is a good way to compare different leasing offers in terms of their attractiveness, as already mentioned in the beginning. As a general rule, a lower leasing factor means a better offer. This also makes it suitable for comparing different brands of very similar vehicles and selecting your favorite based on price and performance.
However, it must be noted that the LF is a very sober way of looking at things is. There is no valuation of any additional services at all. It can also only offers with an equivalent running time and mileage safely compare.
In practice, the factor increases with a shorter running time and higher KM mileage. That means an offer with 10.000km per year and 48 months will have a better LF than an offer with 12 months and 30.000km. At end is the latter offer but maybe the better choice, because you can drive more and is bound for a shorter time.
the leasing factor is easy to calculate and allows you to compare offers.
Other services such as vehicle insurance or a maintenance package that is already included in the rate are also disregarded. This means that you have to take a close look at the offers here and, if necessary, make a comparison. must calculate for yourself what you could save with integrated insurance.
Use calculator or formula and find new car
In our offers, both the leasing factor and the total cost factor are listed. We try to make all costs as transparent as possible and to meet the demand of the best possible comparison. Search now our offers and find the new car of your dreams. The calculator or formula can be easily used for any other offer. For example, if an offer from the car dealer is available.
If you want to calculate which taxation is best for your company car, we recommend our company car calculator.