0% leasing: What does it exactly mean?

At first glance, it sounds like a very tempting offer: 0% leasing. Many leasing providers advertise this attractive promise and its unique conditions. But what exactly does 0% leasing mean? Is it really free? Or is it just an empty promise? In this blog, we explain exactly what 0% leasing means and whether it's worth it for you.

Is 0% leasing the same as 0% financing?

We are probably all familiar with 0% financing. This means that you get a loan or instalment financing where you don't have to pay any interest on the repayment. But does this also apply to 0% leasing? Basically yes, because with 0% leasing you don't pay any interest on the financing, or to be more precise, you don't pay any interest on the list price of the car.

Zero interest, zero problems?

No, the crux of the matter is this: The list price is often higher than what you would pay after negotiating a direct purchase. Discounts that are common when paying cash or taking out a loan are often lost in a 0% leasing offer.

Such offers are usually offered directly by car manufacturers or their affiliated leasing companies who want to open up new sales markets or promote certain models. Independent leasing companies that also advertise 0% leasing often compensate for the lack of interest with other fees or higher basic costs.

Beware of the small print

Although the concept sounds simple and straightforward, the biggest drawback of 0% leasing offers is their lack of transparency. Each provider defines '0% leasing' differently, and sometimes the absence of a down payment does not automatically mean an interest-free offer. This is why it is so important to check the terms and conditions and compare offers carefully.

Conclusion 0% leasing: a look behind the scenes

At first glance, 0% leasing sounds like an exciting offer. Paying no interest on the amount you finance sounds like a good deal! However, when you take a closer look at the total cost, you quickly realise that the maths is more complicated.

High list prices or fees can make the cost to the lessee soar, even without interest. It is therefore advisable to check the terms and conditions carefully and to think beyond traditional leasing models.

Regardless of whether you opt for 0% leasing or another leasing model, you will usually incur many additional costs with any leasing arrangement. This is because the leasing instalment only covers the cost of using the car, the financing costs and, if applicable, the interest. There are also additional costs for insurance, tax, maintenance and other expenses such as tyres. This makes it difficult to plan your actual monthly costs.

Discover your leasing alternative

Fortunately, there are newer mobility solutions that promise a fair and transparent deal with no hidden costs and more flexibility. Car subscriptions, for example, offer clear pricing with no hidden costs and the flexibility that customers want today.

Carvolution's all-in-one subscription, with a large selection of car models, offers just that. Insurance, registration, taxes, service, maintenance and tyres are all included, while the contract period and kilometres can be flexibly adjusted. With the individual cost comparison, you can also compare the cost of a car subscription with the total cost of leasing, without obligation and free of charge. This way you can be sure of the costs of the different options and find the best mobility solution for you.