Why use a Car Lease Calculator?
Judging whether the car lease deal you have found is a good one can be challenging. Brokers and manufacturers often display the parameters of a deal differently to entice you with low monthly payments so comparing deals with different contract lengths, upfront fees and monthly repayments can confusing.
On the face of it it’s hard to know whether a 3 year deal at a lower monthly cost is really better than a 2 year deal with a higher monthly payment but lower initial payment.
At LeaseBeast, we’ve created a simple car lease calculator for UK car lease deals that helps you understand how good your deal really is.
How does it work?
The Lease Beast calculator is incredibly simple to use, but before you jump in you need to make sure that you have all of the details of the car lease, or leases, that you are interested in analysing. These details include:
- The upfront cost or initial rental fee
- The monthly payment fee
- Any arrangement or admin fee
- The length of the lease in months
- The recommended retail price (RRP) of the car – this is not essential but is useful as we will explain below
Once you have these details, head on over to the calculator and input them into the calculator.
The calculator will output several data points about your deal including:
- The total cost of the deal over the course of the entire deal
- Total Monthly Cost (Amortised) – this shows the monthly cost but also includes the upfront costs averaged out over the length of the deal. It’s useful to be able to compare different deals
- Total Annual Cost – The total cost per year
- Yearly Cost to Price Ratio – the car’s recommended retail price (RRP) is needed to calculate this
Yearly Cost to Price Ratio
This value give you average annual cost of the deal expressed as a percentage of the recommended retail price (RRP). It is explained fully in this blog post LINK, but to summarize it gives you a good idea of the value of the car deal. The lower the number the better as it means you are paying a smaller percentage of the car’s total value each year.
Cost to RRP% guidelines
>15% – Fairly expensive, I’d consider looking around unless deals are rare
< 12.5% – Reasonable and worth considering
< 10% – Very good
< 7.5% – Amazing deal, snap it up
< 5% – Almost unheard of
Hopefully this gives you a good idea of why you should always use a Car Lease Calcluator to check on how good your lease is before signing up.
Luckily, not only does Lease Beast have a calculator but we also vet our lease deals and show you the best ones each on our homepage at http://www.leasebeast.co.uk/#current_deals