Short answer
The best term is not automatically the one with the lowest payment. Compare equal total mileage, all one-off costs and the value of flexibility. Longer contracts spread one-off cost but bind you for longer.
Important variables
- Effective monthly cost including one-offs
- Total contracted mileage
- Maintenance, warranty and wear
- Likelihood of changing circumstances
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Worked example
A €1,200 delivery fee equals €50 per month over 24 months and €25 over 48. The longer contract is better only if payment, mileage and commitment also fit.
Break-even: What changes the result?
High one-off costs mathematically favour longer use. Expected changes in commute, family or vehicle needs increase the value of a shorter commitment.
Common mistakes
- Comparing payments without one-offs
- Changing annual mileage across offers
- Treating flexibility as free
Terms in this guide
Sources & assumptions
- European Commission — Consumer credit (2026-08-17)
- RATIOXA — Methodology and formulas (2026-08-17)
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