Short lease seems clear: a fixed amount per month and drive away. But those who really want to get a grip on costs, look beyond the monthly amount. Because the real TCO (Total Cost of Ownership) – depending on use, changes and downtime – can vary considerably. In this article we show you what to look out for.
Why TCO is more important than ever
Providing insight into actual car costs per person is crucial for budgeting and optimization. Regardless of whether you are sending one employee out or providing cars for an entire project team. The monthly price of a short lease contract is just the beginning.
TCO is all about the big picture: from the contract amount to unexpected costs such as damage, downtime or extra mileage. Only with that full understanding can you make a fair comparison between mobility options or make better choices for subsequent projects.
What is (usually) included in the monthly amount of short lease?
A short lease contract is often “all-in. This means that the following items are included as standard:
- Depreciation
- Insurance (WA + Casco)
- Road tax
- Maintenance and tires
- Breakdown assistance
- Administration fee
But that doesn’t mean you’re done with that. Because actual usage determines whether you stay within this bundle or pay extra.
The variables that really make a difference
Below are the major cost items that are often overlooked when estimating TCO per employee:
1. Mileage bundle vs. realistic usage
Short lease packages assume a pre-selected mileage bundle (e.g., 1,500 or 2,500 km per month). But does an employee structurally drive more? Then you pay per extra kilometer and that amount is often higher than expected (sometimes €0.15 to €0.25 per km).
Case in point: someone who drives 3,000 km/month with a 1,500 km bundle quickly pays an extra €300 per month.
2. Downtime = still paying
An employee on vacation or sick? The car is idle, but the monthly charge continues. Some providers offer a break option, but often you just keep paying anyway. For larger fleets, it pays to take a critical look at this each month.
3. Exchange and transportation costs
Does a car need to be picked up, swapped or taken to another location? Then transportation costs are charged, especially for short-term deployments in projects or changing teams. These amounts range from a few tens to hundreds of euros per swap.
4. Damage and excess
Any damage, no matter how minor, can affect the TCO. Not only because of the deductible, but also because of possible downtime or costs for replacement transportation.
Pay close attention to the terms and conditions:
- What is the standard deductible?
- Can you buy this off?
- Is damage repair mandatory with a permanent partner?
5. Replacement transportation in the event of damage or maintenance
Not always included as standard. Does a car break down or have to go to the garage? Then a car can still be rented at your expense. Some leasing companies charge for this separately, others offer it as part of the package. Check in advance and make clear arrangements.
TCO calculation tool: calculate the full monthly amount per employee
Use the“general” example below as a basis for understanding the true cost of short leasing per employee:
| Cost item | Average amount per month | Explanation |
| Contract amount (including maintenance) | € 725 | Depending on vehicle and bundle |
| Exceeding km bundle | € 180 | 1,200 km extra at €0.15 p/km |
| Damage / Excess | € 50 | Spread over year, e.g. 1 claim of €600 |
| Transportation and exchange costs | € 25 | Spread, e.g. 1 change/quarter |
| Replacement transportation | € 30 | In case of maintenance or breakdown |
| Downtime (unproductive) | € 60 | Eg. 5 days p/month unused |
Total TCO per employee per month: approximately €1,070
Tip: make this part of your monthly reporting. That way you can steer and compare real-time between employees or teams.
Smart TCO management: 3 tips from practice
- Work with mobility profiles per employee
Keep a structural record of who drives how much, in what region, and with what usage patterns. - Set up a central TCO monitor
For example, in Google Sheets or Power BI, linked to trip tracking or fuel declarations. - Evaluate quarterly instead of yearly
That way you can adjust contracts in a timely manner, turn in unnecessary cars or cluster them better by team.
TCO is more than an amount at the bottom of the invoice
Those who only look at the monthly amount run the risk of paying too much structurally. By gaining insight into the full cost picture per employee, you can make better choices and be much more focused on savings, without sacrificing flexibility.
Do you have questions about short lease, TCO or want to calculate your situation together? Contact us without obligation!