MBC insurance brokerage service - Buy vs. Lease Calculator (CDN)


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Financial Calculators

Buy or Lease?

Should you lease or buy your car? Use this calculator to find out! We calculate your monthly payments and your total net cost. By comparing these amounts, you can determine which is the better value for you.

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Buy or Lease?

Your lease payment would be MONTHLY_PAYMENT compared to a LOAN_PAYMENT loan payment.

Your lease payment would be MONTHLY_PAYMENT compared to a LOAN_PAYMENT loan payment. This is based on a price of CAR_PRICE and a TERM month lease vs. a LOAN_TERM month loan. Details of your cost of leasing and cost of buying are shown below:

Buy Lease

Price CAR_PRICE Price CAR_PRICE

Interest rate INTEREST_RATE Interest rate LEASE_INTEREST

Down payment DOWN_PAYMENT Down payment DOWN_PAYMENT

Other fees buy OTHER_FEES_BUY Other fees lease OTHER_FEES_LEASE

Rate of depreciation RATE_OF_DEPRECIATION Residual percent RESIDUAL_PERCENT

GST & PST or HST SALES_TAX Security deposit SECURITY_DEPOSIT

Loan amount LOAN_AMOUNT &NBSP; &NBSP;

Loan payment LOAN_PAYMENT Lease payment MONTHLY_PAYMENT

Net cost of buying Net cost of leasing

Total loan payments + TOTAL_PAYMENTS Total lease payments + TOTAL_LEASE_PAYMENTS

Lost interest on upfront costs + LOST_INTEREST_ON_BUY Lost interest on upfront costs + LOST_INTEREST_ON_LEASE

Down payment + DOWN_PAYMENT Upfront costs + TOTAL_UPFRONT_COSTS

Market value after TERM months* - MARKET_VALUE_AT_END_OF_LOAN &NBSP; &NBSP;

Ending loan balance + ENDING_LOAN_BALANCE &NBSP; &NBSP;

Net cost of purchase = NET_COST_OF_PURCHASE Net cost of lease = NET_COST_OF_LEASE

*We assume that you sell your vehicle at the estimated market value at the end of the term.

Information and interactive calculators are made available to you as self-help tools for your independent use and are not intended to provide investment advice. We can not and do not guarantee their applicability or accuracy in regards to your individual circumstances. All examples are hypothetical and are for illustrative purposes. We encourage you to seek personalized advice from qualified professionals regarding all personal finance issues.

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Definitions

Loan term in months. Term in months for your auto loan.

Down payment. Amount paid as a down payment, which for leases is often called a capital reduction.

Other fees. Any fee, other than a capital reduction or down payment, required to be paid at the close of the lease or loan. This may include license, title transfer fees, etc.

Purchase price. Total purchase price. Price should be after any manufacturer's rebate.

Interest rate. Annual interest rate for your loan or your lease.

GST + PST or HST (%) Tax percentage rate charged on this purchase in your province. GST + PST or HST is included in each lease payment. GST + PST or HST for buying is charged on the total sale amount.

Rate of depreciation. The rate of depreciation gauges how fast your new automobile will lose its market value. A high depreciation rate is about 20% per year, medium is 15% per year and low is 10% per year.

Residual percent. For leases, this is remaining value after the lease term expires. The higher this amount, the lower your lease payment will be.

Market value of vehicle. Value of your auto after the lease term is over.

Investment rate of return. Rate of return on investments. This is the return that you would make if you were to invest your down payment or security deposit instead of using it in your auto purchase or lease.

Information and interactive calculators are made available to you as self-help tools for your independent use and are not intended to provide investment advice. We can not and do not guarantee their applicability or accuracy in regards to your individual circumstances. All examples are hypothetical and are for illustrative purposes. We encourage you to seek personalized advice from qualified professionals regarding all personal finance issues.