Lease vs Buy Calculator (VND)
When you need a car in Vietnam — or any high-value asset for a fixed posting — you face two routes: buy (usually a down payment plus a financing loan, after which you own the asset) or lease (a smaller upfront amount plus monthly lease payments, with the asset handed back at the end). The right answer is not whichever monthly payment is lower; it is whichever has the lower lifetime cost once you credit the buyer with the resale value they recover at the end.
The piece most people overlook is depreciation. A buyer pays the full price but sells the car later, so the money truly gone is only the gap between purchase price and resale value, plus the loan interest. A lessee never owns the asset, so every lease payment is pure cost — but in exchange they carry no depreciation risk and no hassle reselling. Under the calculator's illustrative assumptions — a 1.200.000.000 VND car, 360.000.000 VND down, financed at 9%/year over 48 months, sold afterwards for 600.000.000 VND — buying costs 763.364.909 VND over the life of the deal while leasing at 22.000.000 VND/month costs 1.136.000.000 VND, so buying wins by 372.635.091 VND.
That does not mean buying always wins. If the asset depreciates fast (low resale), the loan rate is high, or the lease is sharply discounted, the balance can tip toward leasing — the worked-example section shows exactly such a flip. As a foreigner, weigh one more thing: if your stay is short or uncertain, leasing spares you the resale process when you leave the country, which has real value beyond the raw numbers. Enter your own figures above — and remember every interest rate, lease price and resale value here is an illustrative assumption, not a quote.
How the calculator models each side
The BUY side (finance and own)
The tool builds a standard amortising (equal-installment) loan on the financed amount:
| Step | Formula |
|---|---|
| Loan amount | Loan = Price − Down payment |
| Monthly rate | i = Annual rate ÷ 12 |
| Monthly payment | EMI = Loan × i ÷ (1 − (1 + i)^−n) |
| Total instalments | EMI × n (n = months) |
| Lifetime cost (buy) | Down payment + EMI × n − Resale value |
Subtracting the resale value is the key step: you only really lose depreciation plus interest, not the whole sticker price. In the illustrative scenario, a 1.200.000.000 VND car resold for 600.000.000 VND means 600.000.000 VND of depreciation over 48 months.
The LEASE side (pay to use, never own)
| Step | Formula |
|---|---|
| Lifetime cost (lease) | Lease down payment + Monthly lease × n |
Leasing is simpler — there is no resale value to add back, because you never owned the car. Compare the two lifetime-cost figures; the smaller one is the cheaper route.
Why monthly payment alone misleads
A finance payment is usually higher than a lease payment, because you are paying to own the whole asset, not just to use it. Looking only at the monthly cash flow always makes leasing look lighter. But at the end the buyer still holds a resaleable car while the lessee holds nothing — which is why a fair comparison must use lifetime cost net of resale.
Vietnam tax and practical notes
In Vietnam, a financial lease (thuê tài chính) and an operating lease (thuê hoạt động) are accounted for differently, and a business lessee may be able to deduct lease payments for corporate income tax while an owner depreciates the asset instead. This calculator compares nominal cash flows only — it does not model tax deductibility, registration fees, insurance, maintenance, or mileage-cap penalties common in lease contracts. Treat it as a quick comparison, not accounting or tax advice.
Worked example 1: Buying wins — strong resale (illustrative)
Illustrative assumptions: a 1.200.000.000 VND car, 360.000.000 VND down, financed at 9%/year over 48 months, resold for 600.000.000 VND; leasing at 22.000.000 VND/month with a 80.000.000 VND lease down payment.
| Item | BUY (finance) | LEASE |
|---|---|---|
| Upfront | 360.000.000 VND | 80.000.000 VND |
| Monthly payment | 20.903.436 VND | 22.000.000 VND |
| Total paid over term | 1.363.364.909 VND | 1.136.000.000 VND |
| Less resale value | − 600.000.000 VND | — |
| Lifetime cost | 763.364.909 VND | 1.136.000.000 VND |
The finance payment of 20.903.436 VND/month is higher than the 22.000.000 VND lease, so monthly cash flow favours leasing. But after 48 months the buyer recovers 600.000.000 VND on resale, pulling the true cost down to 763.364.909 VND — cheaper than leasing by 372.635.091 VND. With this resale assumption, buying wins.
Worked example 2: The decision is sensitive to resale and rate
The whole result hinges on the resale value you assume and the loan rate. Hold the same 1.200.000.000 VND car and lease terms, but suppose the car only resells for 200.000.000 VND (400,000,000 VND faster depreciation). The buy side's lifetime cost rises by exactly that 400,000,000 VND to 1.163.364.909 VND — now more expensive than the 1.136.000.000 VND lease, flipping the answer to leasing by 27.364.909 VND. This is why your estimate of resale value is the single most important input: a car that holds value rewards buying, while a fast-depreciating model often makes leasing the rational choice. Re-run the calculator with realistic resale figures for the exact model you are considering.
Frequently asked questions
Is it cheaper to lease or buy a car in Vietnam?
There is no fixed answer — it depends on the loan rate, lease price and above all the resale value you expect. On the calculator's illustrative assumptions (a 1.200.000.000 VND car financed at 9%/year over 48 months, resold for 600.000.000 VND), buying costs 763.364.909 VND versus 1.136.000.000 VND to lease, so buying wins by 372.635.091 VND. But fast depreciation or a high rate can flip it — enter your own numbers.
Why is buying cheaper when its monthly payment is higher than the lease?
Because buying pays to own the whole car, so the finance payment (20.903.436 VND in the example) is naturally higher than the lease payment (22.000.000 VND). The difference is that at the end the buyer resells the car for 600.000.000 VND while the lessee holds nothing. Once you net out that resale value, the lifetime cost of buying is usually lower — unless the car depreciates very fast.
How does the calculator compute lifetime cost?
Buy side: Cost = Down payment + (Monthly payment × months) − Resale value, where the monthly payment uses the amortising-loan formula EMI = Loan × i ÷ (1 − (1+i)^−n) and i = annual rate ÷ 12. Lease side: Cost = Lease down payment + Monthly lease × months. Check: a 1.200.000.000 VND car with a 840.000.000 VND loan at 9%/year over 48 months gives 20.903.436 VND/month and a 763.364.909 VND lifetime buy cost.
How much does resale value change the decision?
It is the single biggest lever. The higher the resale value, the lower the true cost of buying, because you only lose depreciation (price − resale) plus interest. In example 1 the car holds value (600.000.000 VND resale) and buying wins; if the same car only fetched 200.000.000 VND, the buy cost would rise to 1.163.364.909 VND and leasing would become cheaper. Always estimate resale realistically for the specific model.
Should a foreigner on a short posting lease instead of buy?
Often, yes — beyond the raw cost. If your stay is short or uncertain, leasing spares you the hassle and price risk of reselling a car before you leave Vietnam, and avoids tying up a large down payment. The calculator only compares cash flows, so if it shows buying is slightly cheaper, weigh that against the convenience and flexibility of handing a leased car back. For a multi-year posting where you can sell easily, buying's resale credit usually wins out.
What costs does the calculator leave out?
It compares nominal cash flows only: upfront amounts, the monthly finance/lease payment and the resale value. It does not include registration fees, insurance, maintenance, or mileage-overage penalties common in lease contracts. In practice an owner takes on more maintenance as the car ages, while some leases bundle servicing. Add these to both sides before making a final decision, and remember a financial lease may carry tax effects for a business.
Are the interest rates in these examples real auto-loan rates?
No. The 9%/year used here (and the rates in the Vietnamese examples) is an illustrative assumption chosen so the math is easy to verify, not a quote from any lender. Actual Vietnamese auto-loan rates vary by bank, tenor, vehicle and date. Enter the real rate from your loan offer into the calculator — the amortising formula behaves identically at any rate.