LOA, LLD or Car Loan: Real Cost in France and Europe

Compare the net cost in euros of a LOA (lease with purchase option) or LLD (long-term rental) with a standard car loan in France and Europe: deposit, interest, buyback price and resale value.

Car lease or car loan: comparing net cost after resale

The comparison sets the total rent of a lease returned at the end of the contract against the net cost of buying with a loan: down payment + instalments + maintenance − resale value. With the default values (a €32,000 car over 48 months), leasing costs €19,010 against €21,980 for buying, a €2,970 gap.

The formulas

  • Lease returned = initial payment + monthly rent × (term − 1).
  • Lease with purchase option = same total + the contract's option price, which you enter (€14,000 by default).
  • Loan instalment = C × r / (1 − (1 + r)−n), with C = price − down payment, r = annual rate / 12 and n = term in months.
  • Net cost of buying = down payment + instalments × n + annual maintenance × years − resale.

Default example

€32,000 car, 48 months. Lease: 3,500 + 330 × 47 = €19,010. Purchase: €28,500 borrowed at 4.8%, €653.76 a month, €2,880 of interest; down payment and instalments €34,880, maintenance €2,600, resale €15,500. Net cost: €21,980. Leasing wins by €2,970; buying only pays off with a resale value above €18,470.

Assumptions and limits

This comparison works in euros on a European-style lease (LOA or LLD); for a US lease priced with a money factor, use the US auto lease calculator. Maintenance is counted only for buying, as if the rent included it. Mileage and excess-kilometre charges are not taken into account, nor are insurance, return fees or the opportunity cost of cash. Resale value is your own assumption and it is what tips the result. This is an estimate and does not replace the loan offer or the lease contract.

Frequently Asked Questions

Is it better to buy a car with a loan or to lease it?

It depends on the resale value. With the default values, a returned lease costs €19,010 over 4 years against €21,980 net for buying; buying comes out ahead if the car resells for more than €18,470.

Is exercising the purchase option on a lease worth it?

The tool adds the option price you enter to the rent: 19,010 + 14,000 = €33,010 with the default value, against €34,880 of down payment and instalments when buying with a loan. Compare that total with the price of the same car used.

How is the car loan instalment calculated?

With the fixed-rate amortisation formula: €28,500 borrowed at 4.8% over 48 months gives €653.76 a month and €2,880 of interest. The tool counts neither borrower insurance nor arrangement fees.

Does mileage change the result?

No: the tool takes neither mileage nor the excess-kilometre price into account. If you exceed the contract allowance, add the extra kilometres multiplied by the contract rate yourself.

Is this tool really free?

Yes, all tools on Kristools are 100% free and accessible without registration.

Is my data protected?

Yes. All processing is performed directly and securely inside your browser. No personal data is sent to our servers.