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.
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Buy vs. Lease Automobile
Make & Model:
Lease Suggested Retail Price Tax, Title, etc. Refundable Security Deposit First Month's Payment Capital Cost Reduction Payment Last Month Payment in Advance? Payment (if Yes) Selling Price At End Of Lease Monthly Lease Payment Lease Term Discount for Present Value Future Value of Last Payment Suggested Retail Price Tax, Title, etc.
Buy
Down Payment
Resale Value Monthly Loan Payment Term of Loan Loan Rate Present Value of Resale
Initial Costs Financing Costs Present Value of Refund Present Value of Total Costs
Initial Costs Financing Costs Present Value of Total Costs Difference Note: Positive Value Favors Lease
Taxation Tax Bracket Business Use Percentage Sales Tax Percentage Title Fees Sales Tax Potential Financing Deduction Total Potential Deductions Potential Tax Savings Title Fees Sales Tax Interest Deduction Total Potential Deductions Potential Tax Savings
Note: Depreciation deductions may be available that could change the results of this analysis.