The question of whether a church should purchase or lease vehicles is a very good, but a very intricate question.  To answer it properly you will have to do a rather in-depth analysis.  The numbers below numbers are at best, only guesses..
 
What you would have to do (assuming a 84 month lease) verses an estimated cost to operate a purchased vehicle for 84 months. (Change the numbers if you only want a 5 year or 3 year analysis)
 
You would have to do the seven-year analysis on what the cost would be for each alternative.
 
Purchase Analysis
1. Total cost of vehicle.
2. Opportunity Interest Rate (Rate you could have earned interest on the cash paid for the
     vehicle.)
3. Finance cost if financed.
4. Cost of operations for the three years. (Use only if there is a difference.)
5. Insurance cost (Use only if there is a difference.)
6. Value of the vehicle at the end of three years. Go to Kelly Blue Book www.kbb.com to find out 
    this information.
 
Lease Analysis
1. Cost of the lease over seven years.
2. Cost of operation for the seven years.
3. Insurance cost for seven years.
4. At the end of seven years what will the leasing company give you when you turn in the vehicle 
    or get ready to up-grade? Or what will they charge you at the end of the lease?
 
Lets put some numbers to the above.
 
Purchased price is $35,000 and no finance charges.
Cost of operation $200 per month for 84 months  = $16,800
Cost of insurance $100 per month for 84 months = $  8,400
Trade in value at the end of seven years  $10,000. (Estimated) 
Cost for the 7 year period
     Purchase price less trade in      $25,000 (Estimated)
     Operating cost                             16,800
     Insurance cost                               8,400
        Total cost for three years        $50.200 

Cost of the lease $400 per month for seven years $33,600
Operating cost                                                           16,800
Insurance Cost (Depends on how the 
leasing company handles, may be
different.)                                                                     8,400
Rebate at end of lease (High 
mileage may cost you extra 
on the lease.)                                                                   ??
Total cost after three years                                     $67,200
 
Based on this analysis it would be better to buy. Of course my numbers are only make believe, (I have no idea what a lease would cost), but if you get quote's for purchasing and then for leasing, you could put the numbers in the above formula and see what comes out best. Also, I'm not sure the operating and insurance would be both the same in each instance.                                
                                
If you are interested you can go to the following web site www.fredbien.com and for $29.95 per year you can sign up for his services. One of the services he provides is a “Car Financial Calculator Lease Versus Purchase” interactive analysis.  Simply put in the numbers and the system will calculate the results and give you a recommendation.

A. L. Smith 
Church Business Administration Consultant
1811 Field Briar Drive
Katy, Texas 77450
281-392-4423