Lease vs Buy Calculator

Compare the total cost of ownership between leasing and buying a vehicle to make an informed financial decision.

Vehicle Details
£
On-the-road price including VAT
miles
Lease Option (PCH)
£
Typically 3-9 months' payment
£
Buy Option
£
%
£
Final payment to own the car
Depreciation & Resale
%
% of original price after term
£
Running Costs (Annual)
£ /year
£ /year
£0 for EVs, varies for others
£ /year
£ /year
£ /year
Company Car Option (Optional)
Lease vs Buy Explained
Leasing (PCH) Pros
  • Lower monthly payments
  • No depreciation risk
  • Always drive a new car
  • Maintenance often included
  • No hassle selling
Leasing Cons
  • No ownership/equity
  • Mileage restrictions
  • Damage charges
  • Stuck in contract
Buying Pros
  • You own the asset
  • No mileage limits
  • Can modify vehicle
  • Sell anytime
  • No end-of-contract charges
Buying Cons
  • Depreciation risk
  • Larger deposit needed
  • Responsible for all maintenance
  • Selling hassle
Typical Depreciation
Year Value Retained
1 year75-80%
2 years60-70%
3 years45-55%
4 years35-45%
5 years30-40%

EVs typically hold value better than ICE vehicles

BIK Rates 2026/27
Pure Electric (0g/km) 4%
1-50g/km (PHEV) 4-16%
51-100g/km 17-26%
101-150g/km 27-36%
150g/km+ up to 37%
Tips
  • Leasing often better for high-mileage users of depreciating cars
  • Buying better if you keep cars 5+ years
  • EVs via salary sacrifice can be very tax-efficient
  • Consider insurance grouped policies for lease
  • Factor in your opportunity cost of cash
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