Buy or lease a vehicle calculator
Weighing up the decision to buy or lease a vehicle? This is the calculator for you.
This calculator weighs up the financial differences between buying and leasing. Don’t forget to consider other details such as terms for breaking a lease, maintenance responsibilities, and any kilometer limits imposed by a lease.
One consideration for business is tax. I haven't included it here, and it's worth knowing why it matters less than people assume. Lease payments are deductible, which sounds like a clear win for leasing, but if you buy, you deduct depreciation and the loan interest instead, and over a full cycle those largely even out. When you eventually sell, depreciation recovery claws back much of what you've already claimed. FBT doesn't separate the two either: it's charged on the vehicle's cost price whether you own it or lease it, so it lands on both sides at much the same size. And if you're a sole trader or a partnership, you don't pay FBT at all. The genuine difference is cashflow timing rather than total tax. Buy, and a GST-registered business claims the GST back on the whole price in its next return; lease, and it trickles back monthly. Talk to your accountant about your own situation, but don't lease on the assumption that the tax decides it.
For personalised advice on any financial decisions you are considering, then get in touch for a no obligations chat to see how I may be able to add value for you.
Related calculators
Car comparison spreadsheet — the long-term cost of owning one car, or two cars against each other.
Cost of petrol calculator — how much a trip will cost you.