Lease vs Loan Calculator

A Guided Walkthrough of Your Asset Decision

We built this tool to give you a clear financial snapshot of your next car or capital expenditure. Here is how to use this instant quote calculator to understand the cost:

First, enter the cost of the car or asset you are considering, along with any deposit and your desired loan term. The calculator will then provide a reliable estimate of your monthly payments and total costs for both a lease and a loan. Please keep in mind this is an excellent guide for planning, as the final interest rate and any applicable GST or fees will be confirmed by the financial institution based on your business's overall credit profile.

Let's understand the two main paths for funding your next business vehicle or equipment.

The Finance Lease Term

A finance lease is like a long-term rental agreement for a business car or vehicle. A finance provider purchases the asset you need, and you make fixed monthly payments over the lease term to use it. This structure is often considered off-balance-sheet financing and is ideal for preserving working capital. An operating lease is a similar option for a shorter term of use, which can lower the overall cost.

This path is great for predictable budgeting and for assets that need regular upgrades, such as technology refreshes or an efficient fleet. To lease car models this way is a popular choice for businesses. At the end of the term, you have flexible end-of-lease options with your lease provider:

• Asset Upgrade:  Return the asset and start a new lease with the latest model.
• Ownership:  Make a final payment to purchase the asset.
• Return It:  Simply hand the asset back with nothing more to pay.

The Chattel Mortgage: A Car Loan Term Explained

This is the most direct path to ownership, often structured as a chattel mortgage or an equipment auto loan. With this type of equipment loan, the car is legally yours from day one. The finance provider provides the funds, and this secured loan uses the equipment itself as security. This is perfect for businesses that want to build equity, and there may be significant tax benefits from depreciation. This type of loan often has a competitive interest rate and favourable tax treatment.

Lease vs Buy: The Difference & Tax Implications

Choosing between a lease and a loan comes down to your business goals and cash flow strategy for your new car. Here is a simple way to think about it to save money:

A Car Lease might be best if:

• Preserving working capital is your top priority, and you want lower upfront costs.
• You need a business vehicle or equipment that requires frequent upgrades.
• You prefer predictable, tax-deductible payments for easier budgeting on running costs.

A Car Loan might be best if:

• You intend to keep the revenue-generating car or asset for the long term.
• You want to build equity and have a vehicle on your books with low interest.
• You want to take advantage of tax deductions, GST claims and depreciation benefits with your loan.

Our Simple Process for Approved Business Funding

We believe in a transparent process for all business loans. Here is what happens after you get in touch for your SME equipment or car funding:

1. You Start the Conversation:  Fill out a simple form in about 2 minutes. This is a preliminary check and will not impact your credit score.
2. Our Technology Finds Your Match:  Our LendIQ™ platform analyses your information and instantly compares it against the policies of over 80 finance partners to find the best car loan or lease suited for your business growth.
3. We Call You With Options:  A member of our team will call you to discuss your best loan match and explain the interest rates, ownership options, and any residual value structures, with no obligation to proceed.