What percentage of the car's value can you pay upfront (down payment)?

0% — I finance the full amount: €0 — Higher monthly payment and total overpayment. Some products require a minimum down payment — without it, your choice narrows. 10–20% of the car's value: €0 — A standard down payment reduces the principal and thus the total overpayment. On a €20,000 car with a 20% down payment you finance €16,000. 30% or more: €0 — A higher down payment = lower monthly commitment and less interest paid overall. Optimal if you have reserves — just don't compromise your emergency fund.

Do you want to own the car after you finish paying?

Yes, I want to own it and drive it longer: €0 — A bank loan is more suitable — the car is yours from the start. After payoff, zero monthly costs (besides running costs and repairs). No, I want to change cars every 3–4 years: €0 — An operating lease can be worth it — a fixed monthly payment, no hassle with selling. A longer-term cost comparison depends on the specific offers. I'm not sure: €0 — In that case we recommend a loan — it keeps you flexible (you can sell the car if you decide otherwise).

What monthly payment can you handle without touching your emergency reserve?

Up to €200 per month: -€200 — A low limit — you'll likely need a higher down payment or a longer term (the longer the term, the more interest you pay). €200–400 per month: -€300 — A standard range for a car priced €12,000–20,000 with 5-year financing and an APR up to 9%. Over €400 per month: -€450 — A higher limit — you have room to choose a shorter term (3 years) and pay less interest. Or pick a better car without stretching your budget.

Car lease or loan? A comparison that saves you time

If you are financing a car, you face two main options: an operating or finance lease, or a bank loan. This overview shows how they differ, what each really costs, and what decides between them.

This text was created or edited with the help of artificial intelligence and passed human editorial review before publication. Always verify figures, prices and terms against the current conditions of the specific provider.

What to weigh up

A lease means you pay for using the car — at the end you usually do not own it (operating lease) or you can buy it out (finance lease).
A loan means you pay to buy — you own the car from the start, even while it is pledged to the bank.
What you overpay on either is set by the APR, not the size of the monthly payment — that can be stretched by the term. What have you been comparing offers on so far?
An operating lease handles swapping the car every 3–4 years without worrying about resale or repairs. A loan gives you ownership and the freedom to sell whenever. Which of those is worth more to you?

Step 1 of 5

What is the price of the car you're financing?

What to work out before you decide

1.The highest monthly payment you can carry without touching your emergency reserve. That is your ceiling — the market average says nothing about your budget.
2.The APR and the total amount paid from at least three offers (bank, leasing company, dealer). The monthly payment is the least informative number in any of them.
3.Whether you want to own the car or swap it regularly. That single answer decides between a lease and a loan sooner than any rate comparison.

You can live through this decision

In the “First Job” track you reach the same choice — and see where it takes you a few years on.

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This is not financial advice. Numbers are illustrative and for educational purposes only. Always verify current conditions with your provider before making any financial decision.

Car lease or loan? A comparison that saves you time

What to weigh up

Try it yourself

What is the price of the car you're financing?

What to work out before you decide