Driving & travel · Calculator companion · By K Imports
Car lease, buy and PCP finance: practical guide
This guide explains how to use the Count.ie car lease, buy and pcp finance. Compare entered lease/buy costs or calculate a PCP monthly payment, final balloon and keep/return costs. Follow the inputs, method and worked example below, then compare your own scenario.
Guide written .
Open the Car lease, buy and PCP finance calculatorWhat to prepare
- Record the distance, vehicle specification and the relevant fuel or electricity price.
- Separate one-off purchase or import costs from recurring running costs.
- Use observed consumption where available and label any manufacturer's figure as an assumption.
Understand the inputs
- Calculation mode
Options: Compare entered lease/buy payments; Calculate PCP finance and keep/return.
- Total purchase finance interest (€)
Shown when Calculation mode is entered.
- Lease initial payment (€)
Shown when Calculation mode is entered.
- Regular monthly lease payment (€)
Shown when Calculation mode is entered.
- Lease end fees (€)
Shown when Calculation mode is entered.
- Lease included annual distance (km)
Shown when Calculation mode is entered.
- Excess mileage price (€/km)
Shown when Calculation mode is entered.
- PCP cash deposit (€)
Shown when Calculation mode is pcp.
- Nominal annual interest rate, not APR (%)
Shown when Calculation mode is pcp.
- Final balloon / guaranteed future value (€)
Shown when Calculation mode is pcp.
- Upfront cash-paid finance fee (€)
Shown when Calculation mode is pcp.
- End fee when retaining car (€)
Shown when Calculation mode is pcp.
- Contract annual included distance (km)
Shown when Calculation mode is pcp.
- Return excess-distance price (€/km)
Shown when Calculation mode is pcp.
- Expected return-condition charges (€)
Shown when Calculation mode is pcp.
The calculation method
Lease cost includes initial payment, entered regular monthly payments, end fees and excess mileage. Buy cost = purchase − resale + finance cost. PCP mode discounts the final balloon and amortises the remaining principal using monthly compounding. At zero interest: (price − deposit − balloon) / months.
Worked example
Illustrative inputs and their result.
Example inputs
- Calculation mode
- Compare entered lease/buy payments
- Comparison months
- 36
- Purchase cash price (€)
- 30000
- Value after comparison period (€)
- 19000
- Total purchase finance interest (€)
- 1800
- Lease initial payment (€)
- 3000
- Regular monthly lease payment (€)
- 350
- Lease end fees (€)
- 200
- Annual distance (km)
- 18000
- Lease included annual distance (km)
- 15000
- Excess mileage price (€/km)
- 0.1
Calculated example result
- Buying Saving
- €3,900.00
- Lower Cost Option
- Buy
How to interpret the result
A running-cost or range estimate is not a guarantee of real-world performance. Weather, loading, driving conditions, charging losses and changing prices can alter the result.
Compare vehicles over the same distance and ownership period. Test a higher energy price or worse consumption before deciding that the apparent saving is dependable.
Common mistakes to avoid
- Do not mix litres per 100 km with miles per gallon, or battery capacity with energy purchased.
- Distinguish an advertised charging power from power sustained during a full session.
- Check taxes, vehicle classification and exclusions against the stated date and sources.
Assumptions and sources
Months is the number of regular monthly payments. Ensure an initial rental replacing the first payment is not double counted. Excludes running-cost differences, tax treatment and discounted cash flows. PCP nominal rate is not APR; fees are cash-paid. Hand-back assumes a contractual right and entered mileage/condition charges. Replacement-car finance and early settlement are excluded.
If your case falls outside this scope, use a more suitable calculator or contact us about an unclear method.