Own or Lease Calculator

Is it more profitable to own or lease a vehicle?

The answer to this question really comes down to what rate of return, ie. 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.

Choose a lease or loan term months

Buying Leasing
Purchase Price
Purchase price for FBT calculation
New Car?
FBT @64%,  number of days per week FBT @64%,  number of days per week
interest only Loan
Interest Rate on money borrowed
Down Payment
Upfront Lease fees
use gross net of   tax return
Rate of return if invested the deposit
Lease payments per month
average / year
Registration & WOF
average / year
Maintenance (including oil and lube changes, replacement of tyres)
Other fees to buy
Loan Amount

Net cost of buying Net cost of leasing
Total loan interest paid
Opportunity cost of deposit
Opportunity cost of Down Payment & Fees
Opportunity cost of Upfront fees paid
FBT paid over period
FBT paid over period
Drop in market value at end of period
Total lease payments made
Net cost of purchase
Net cost of lease

NOTE: Generally Lease Agreements include maintenance costs and lease companies can buy cars at a discounted price.

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