Buy vs Lease Automobile
Use this template to analyze whether to buy or lease a car. It assumes that the
discount for present value and the cost of borrowing are different, though they
could be equal.
Enter lease and purchase data in unlocked cells. The tax consequences of a
lease and a purchase may be decisive and will vary in each instance, so you
should see your tax advisor if taxation enters the picture. Always check with
your professional advisors before you make an important financial decision.
To view the template, click the worksheet tab labeled Template at the bottom
of the screen or press Ctrl-PgDn. With the exception of data entry cells, all cells are
protected. Use the Tab key to move from one unprotected cell to the next.
Buy vs. Lease Automobile
Make & Model:
Lease Buy
Suggested Retail Price Suggested Retail Price
Tax, Title, etc. Tax, Title, etc.
Refundable Security Deposit
First Month's Payment
Capital Cost Reduction Payment Down Payment
Last Month Payment in Advance?
Payment (if Yes)
Selling Price At End Of Lease Resale Value
Monthly Lease Payment Monthly Loan Payment
Lease Term Term of Loan
Discount for Present Value Loan Rate
Future Value of Last Payment Present Value of Resale
Initial Costs Initial Costs
Financing Costs Financing Costs
Present Value of Refund
Present Value of Total Costs Present Value of Total Costs
Difference
Note: Positive Value Favors Lease
Taxation
Tax Bracket
Business Use Percentage
Sales Tax Percentage
Title Title
Fees Fees
Sales Tax Sales Tax
Potential Financing Deduction Interest Deduction
Total Potential Deductions Total Potential Deductions
Potential Tax Savings Potential Tax Savings
Note: Depreciation deductions may be available that could change the results of this analysis.