Own or Lease Calculator
Financial Calculators
Buy vs Lease Vehicle
The answer to this question really comes down to what rate of return, i.e. how much you could make on the money tied up in the initial car purchase and how much your car will depreciate.
For businesses the decision to own or lease vehicles often comes down to cash flow.
Note: The results of these calculations are specific to the New Zealand taxation system.
| Net Cost of Buying | Net Cost of Leasing | ||
|---|---|---|---|
| Total loan interest | $0 | Opp. cost of deposit | $0 |
| Opp. cost of down payment & fees | $0 | Opp. cost of upfront fees | $0 |
| FBT paid | $0 | FBT paid | $0 |
| Depreciation (market drop) | $0 | Total lease payments | $0 |
| NET COST OF BUYING | $0 | NET COST OF LEASING | $0 |
NOTE: Generally Lease Agreements include maintenance costs and lease companies can buy cars at a discounted price.
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