Yearly cost to Price Ratio
Expressing the annual cost relative to the RRP is a useful way of determining how good a car lease deal is. It is calculated as the total annual cost of a lease deal as a percentage of the recommended retail price (RRP) of the car. You can easily work it out by taking the annual total divided by the RRP and then multiplying that number by 100 to get the percentage. Use our calculator to help you!
It is a reasonable way to establish the strength of the deal. Just one word of warning: Sometimes the RRP can be skewed as the car can be available with large discounts from a broker. The RRP isn’t always the best measure but it can provide a good indication. It’s therefore always worth checking various brokers to see what kind of discount can be achieved.
% Annual cost to RRP calculation guide
I.e. A £35,000 car available for a total cost of £7,500 over 2 years = ((£7,500/2) /£35,000) *100 = 10.8% of RRP
We, therefore, suggest aiming for a deal that falls between 7.5% to 12.5% over the term for a 2 year lease.