Short answer
An upfront payment moves cost to the start of the contract. Spread it across the term and compare it with payments, delivery and return costs. It lowers the visible monthly payment, not necessarily total cost.
Important variables
- Upfront payment and contract term
- Monthly payment and delivery
- Treatment after theft or total loss
- Alternative offers without upfront cash
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Worked example
A €3,600 upfront payment over 36 months already equals €100 per month. An advertised €299 payment therefore carries at least €399 monthly contract cost before delivery.
Break-even: What changes the result?
The shorter the term, the more the same upfront sum adds per month. A zero-upfront offer also preserves liquidity and makes cost easier to compare.
Common mistakes
- Comparing advertised payments only
- Not spreading upfront cash across the term
- Ignoring contract risks attached to prepaid money
Terms in this guide
Sources & assumptions
- European Commission — Consumer credit (2026-08-17)
- RATIOXA — Methodology and formulas (2026-08-17)
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