Lease vs Buy a Car Calculator NZ

This calculator works out whether it is cheaper to lease a car or buy one outright or on finance, once you look past the headline monthly payment and account for what you actually keep at the end. You enter your monthly lease payment and any upfront lease cost, then the purchase price if you buy, a finance rate (set this to zero if you are paying cash), the resale value you expect to get back when you sell, and the number of years you want to compare over. The calculator returns a verdict on which option is cheaper over that period, along with the lease total, the buy net cost, and the dollar difference between the two. The lease total is simply the monthly payments plus any upfront fee, money you do not get back. The buy net cost is the purchase price plus finance interest, minus the resale value you keep as an owner, which is often the deciding factor since a leaseholder walks away with nothing. Use it to test different lease deals, finance rates or resale assumptions, and remember to check what each option actually includes, since some leases bundle servicing, insurance or other running costs that a straight purchase does not. The result is an estimate to guide your decision, not financial advice.

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Lease

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$

Buy (cash or finance)

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%
$
Buying is cheaper over the period
net cost over the period (lower is cheaper)
Lease total$38,000
Buy net cost$34,200
Difference$3,800

Buying net cost is the price plus finance interest, minus the resale value you keep. Set the finance rate to 0 for a cash purchase. Check what each option includes, as some leases bundle servicing and insurance. Estimate only, not financial advice.

How it works

The lease total is the monthly payment across the period plus any upfront cost, money that is gone with nothing owned at the end. The buy net cost is the purchase price plus the interest on any finance, minus the resale value you get back because you own the car. That resale value is the key difference, since an owner keeps an asset a leaseholder does not. Comparing the two net figures shows which is genuinely cheaper over your chosen period.

Worked example

A $750 a month lease over four years with $2,000 upfront costs $38,000, with nothing owned at the end. Buying a $45,000 car with finance interest of $16,200, then selling it for $27,000, gives a net cost of $34,200. Here, buying is cheaper because the resale value offsets much of the cost.

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Frequently asked questions

Is it cheaper to lease or buy a car?

It depends on the lease payments, finance costs, and how much value the car keeps. A low lease payment is not the whole story, because when you buy you own an asset you can sell. This calculator compares the net cost of each over the same period.

What is the real cost of buying a car?

The real cost of buying is the purchase price plus any finance interest, minus the resale value you keep at the end. Depreciation, the value the car loses, is the largest hidden cost of owning.

Does leasing include running costs?

Some leases bundle servicing and other costs while others do not, so check what is included. This calculator compares the core lease versus finance cost, so add any differences in what each includes.