Lease vs Buy Calculator UK
Compare leasing vs buying vans and equipment. Total cost, cash flow impact, and tax benefits. Make the right finance decision.
Asset Details
Van, equipment, or vehicle price
📄 LEASING Option
💰 BUYING Option
Typical: 5-8% for commercial vehicle loans
Vans: ~25-35% of purchase price after 4 years
19% (small profits) or 25% (main rate)
Common Scenarios:
Comparison
Leasing Saves
£6050
Over 48 months (4.0 years)
Lease is Better
Significant savings by leasing
Verdict
🚨 LEASING IS CHEAPER
Leasing saves £6050 over 48 months vs buying. Significant difference.
Lease if: you want to upgrade regularly, don't have deposit, or asset will depreciate heavily. Monthly cost: £350 vs £711 loan.
📄 Leasing Cost
💰 Buying Cost
💡 Monthly Cash Flow
💰 Buy: Pros & Cons
Pros: Own asset, sell later, capital allowances. Cons: Ties up cash, responsible for repairs, stuck if needs change.
📄 Lease: Pros & Cons
Pros: No deposit, predictable costs, easy upgrade, maintenance included. Cons: Never own, mileage limits, total cost higher.
🧾 Tax Treatment
Lease: payments fully deductible. Buy: 100% capital allowances in year 1 (Annual Investment Allowance). Both give similar tax relief.
🚗 Track Vehicle & Equipment Costs in Toolfy
Track all vehicle and equipment costs in one place. Toolfy shows total cost of ownership vs what you budgeted:
Log all costs
Lease payments, fuel, insurance, maintenance - see total cost
Cost per mile tracking
Know your true cost per mile including all running costs
Compare lease vs buy
See actual costs vs what you would have paid with different option