Understanding Initial Rentals and Monthly Payments
Lease deals often show both an upfront payment and a monthly rental. Understanding the difference helps you compare offers fairly and avoid “cheap monthly” traps.
What is an initial rental?
The initial rental is the upfront amount you pay at the start. It’s often displayed as a multiple of the monthly rental (e.g. 6 or 9 months).
Why upfront rentals vary
- Higher initial rental can reduce the monthly price.
- Some deals are structured to look cheaper in listings.
- Stock, funding rates, and provider terms can influence structure.
Compare deals like-for-like
Simple comparison method
Initial rental + (monthly rental × number of months)
Also compare mileage allowance and whether maintenance is included. A lower monthly can still be more expensive overall if the upfront payment is much higher.