BUY vs.

LEASE
MAKE & MODEL

[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

BUY
$12,000.00
$250.00
$150.00
$200.00
$100.00
Yes
$200.00
$7,500.00

Suggested retail price

$12,000.00

Tax, title, etc.

$250.00

Down payment

$2,000.00

Resale value

$7,500.00

Monthly lease payment

Lease term (years)
Discount for present value

$225.00
5
5.00%

Monthly loan payment

Term of loan (years)
Loan rate

Future value of last payment

$256.67

Present value of resale

Initial costs
Financing costs

$900.00
$11,747.59

Initial costs
Financing costs

Present value of refund

Present value of total costs

-$116.88
$12,530.71

Present value of total costs

DIFFERENCE

$188.71
5
5.00%
$5,844.04
$2,250.00
$10,000.00
$6,405.96
-$6,124.75

Note: Positive value favors leasing.

TAXATION
25.00%
6.50%
9.50%

Tax bracket
Business use percentage
Sales tax percentage

TAXATION
Title
Fees
Sales tax
Potential financing deduction
Total potential deductions
Potential tax savings

LEASE
$150.00
$150.00
$1,140.00
$13,500.00
$14,940.00
$728.33

TAXATION
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.

BUY
$150.00
$150.00
$1,140.00
$1,322.74
$2,762.74
$134.68