| | Lease vs Buy Analysis |
| | Financing Options |
| | This tool helps to compare leasing versus buying as a potential method of acquiring a vehicle. It is for use of Plan2go Pty Limited financial analsyis only. The lease interest charge is a close approximation. Please note that this example assumes that taxes are paid outside of the monthly lease payments and that the taxes on down payment are paid outside the monthly lease or loan payments as well. |
| | Costs | | | Finance Charges and Residual | | | Fees |
| | Retail Price (Original Purchase Price Asset) | | 25,000.00 | Interest Rate (Lease term charges) | | 8.35% | Borrowing Costs - Application Fees | | 500.00 |
| | Capitalized or Negotiated Cost | | 22,000.00 | GST | | 10.00% | Termination (Lease payout figure) | | 300.00 |
| | Cap. Cost Reduction (Down Payment) | | 2,000.00 | Lease Period (months) | | 36 | Inspections/ Document Fees | | 200.00 |
| | Cap. Cost Reduction (Trade in) | | - 0 | Residual Value in % | | 55% | License & Registration | | 185.00 |
| | Remaining Amount (Net Capitalized Cost) | | 20,000.00 | Residual Value in $ | | 13,750.00 | Stamp Duties/Other Taxes |
| | Trade In Allowance | | | | | | Taxable Fees |
| | Balance Owed on Trade In | | | | | | Other Taxable Fees/Options |
| | Lease Analysis (Fees paid separately) | | | Buy Analysis (Down Payment paid separately) | | | Buy Analysis (Downpayment & Fees Paid Separately) |
| | | Overall | Monthly | | Overall | Monthly | | Overall | Monthly |
| | Costs: | Cost | Payments | Costs: | Cost | Payments | Costs: | Cost | Payments |
| | Capitalized Cost | $ 22,000.00 | | Negotiated Cost | $ 22,000.00 | | Negotiated Cost | $ 22,000.00 |
| | Down payment | 2,000.00 | | Down payment | 2,000.00 | | Total Payment | 2,000.00 |
| | Net Balance on Trade-In | - 0 | | Net Balance on Trade-In | - 0 | | Net Balance on Trade-In | - 0 |
| | Taxable Fees/Options | - 0 | | Taxable Fees/Options | - 0 | | Taxable Fees/Options | - 0 |
| | | | | Net Taxable Amount | 20,000.00 | | Net Taxable Amount | 20,000.00 |
| | Tax on Down Payment | 200.00 | | Tax on Down Payment | 200.00 | | Tax on Vehicle | 2,000.00 |
| | Fees: | | | Fees: | | | Fees: |
| | Borrowing Costs - Application Fees | 500.00 | | Borrowing Costs - Application Fees | | | Borrowing Costs - Application Fees |
| | Termination (Lease payout figure) | 300.00 | | Termination (Lease payout figure) | | | Termination (Lease payout figure) |
| | Inspections/ Document Fees | 200.00 | | Inspections/ Document Fees | 200.00 | | Inspections/ Document Fees | 200.00 |
| | License & Registration | 185.00 | | License & Registration | 185.00 | | License & Registration | 185.00 |
| | Stamp Duty | - 0 | | Stamp Duty | - 0 | | Stamp Duty | - 0 |
| | Other Fees | - 0 |
| | Total Paid Outside Lease | 3,385.00 | | Total Paid Outside Loan | 2,585.00 | | Total Paid Outside Loan | 2,385.00 |
| | Total Amount to Finance: | 20,000.00 | | Total Amount to Finance: | 20,000.00 | | Total Amount to Finance: | 22,000.00 |
| | | | | Taxes on Net Amount | 2,000.00 | | Total Credits |
| | | | | Total Amount to Finance | 22,000.00 | | Total Amount to Finance | 22,000.00 |
| | Lease Payments: | | | Loan Payments: | | | Loan Payments: |
| | Depreciation: (NCC-RV) | 6,250.00 | 173.61 | PV = 22000., I = 10.00% | 24,946.48 | 692.96 | PV = 22000., I = 10.00% | 24,946.48 | 692.96 |
| | Interest (NCC+RV)*MF | 4,227.19 | 117.42 | N = 36 PMT = ? | | | N = 36 PMT = ? |
| | Taxes | 1,047.72 | 29.10 |
| | Total Lease Costs | 11,524.91 |
| | Total Costs | 14,909.91 | | Total Costs | 27,531.48 | | Total Costs | 27,331.48 |
| | Less Residual Value | | | Less Residual Value | (13,750.00) | | Less Residual Value | (13,750.00) |
| | Total Lease Payments: | $ 14,909.91 | 320.14 | Total Payments: | $ 13,781.48 | 692.96 | Total Payments: | $ 13,581.48 | 692.96 |
| | Interest charges are calculated by adding the capitalised cost plus residual value times the money factor, which is the interest rate in decimal form divided by 24. It can also be thought of as the average amount outstanding, or (remaining amount + residual value) / 2 times the average interest rate of APR / 12. Multiplied out, it is the remaining amount plus residual value * APR / 24 or the Money Factor. |
| | | | | Amount from Lease Contract | | APR |
| | Actual Monthly Lease Charge in Dollars | | | 212.77 | | 15.13% |
| | Actual Annual Lease Charge in Dollars | | | 7,659.90 | | 15.13% |
tutorthammy
P2G-Lease-vs-Buy-Worksheet_for_Event_31.xlsx
