Total Renting: Is car leasing for individuals a financial trap?

Car leasing for individuals: €16,500 for a car that is not yours

A salaried employee, unable to deduct taxes, evaluates a €336 monthly lease for four years on a hybrid car with 15,000 km annually. The offer seems tempting: it avoids capital depletion and covers insurance, maintenance, and repairs. However, the total cost amounts to approximately €16,500. The question is: does it really make sense?

Market analysts are largely skeptical. The most direct comparison is buying a low-cost new car, such as a Dacia Sandero GLP with an ECO label, for around €13,000. After four years, its residual value is still around €8,000, resulting in a net usage cost of about €5,000, compared to the €16,500 of the lease. Even a used car costing €7,000 to €8,000 can last 20 years if well-maintained.

Leasing is designed for businesses that can deduct VAT and expenses as business costs. For individuals, it only makes sense in very specific cases: when liquidity is needed for high-yield investments, or when the vehicle is a work tool with high depreciation. Outside these scenarios, leasing a car with annual mileage limits is practically a financial loss.

The case of Total Renting and intermediaries

The mentioned company, Total Renting, acts as a broker between the customer and major leasing firms. Massive positive reviews online raise suspicions: the accumulation of favorable opinions is striking. Reported issues include delivery delays, and in case of any incident, the customer must deal with the underlying leasing company, not the intermediary. Trust in these platforms is, at best, questionable.

Smarter alternatives

For an individual without tax deduction needs, the most sensible options are buying a used vehicle between €5,000 and €15,000, preferably over ten years old and mid-to-high range for reliability. Or, if buying new, an economical car like the Dacia Sandero GLP, which also has an ECO label and allows access to low-emission zones without extra fees.

With the cost difference between leasing and buying, one could even consider renting a car occasionally when needed and saving the rest. But the leasing offer seduces with its apparent convenience; the fine print, however, involves €16,500 that is never recovered.