The New Zealand Government’s new Investment Boost announcement has sparked plenty of interest - and for good reason. With the ability to increase tax deductible expenses, through higher depreciation, on eligible asset purchases, businesses are encouraged to invest in growth and modernisation.
But one question ORIX continues to field from our customers is:
“Should we take advantage of the tax break and buy now, or is leasing still the smarter choice?”
The short answer? It depends.
The right approach comes down to your cashflow, asset lifecycle, risk appetite and operational priorities.
Here’s a closer look at the options and trade-offs:
1. Cash Flow Still Comes First
While the Investment Boost provides generous deductions, purchasing outright still requires a significant cash commitment. For many businesses, that ties up capital that could be used elsewhere, whether it's for hiring, marketing, or day-to-day operations.
Leasing allows you to preserve cash flow or funding lines and access the assets you need, without a large financial outlay. It offers predictable, manageable costs – especially important for growing or cash-sensitive businesses.
2. Leasing Offers Tax Benefits Too
Leasing costs are typically fully tax-deductible operating expenses. Unlike front-loaded depreciation benefits in year one under the Investment Boost, leasing delivers consistent, predictable deductions over time - making it easier to plan, forecast and manage budgets.
This can be particularly attractive for businesses that want simplified accounting, smoother budgeting, and benefits that scale with asset usage.
3. Fleet Management vs Business Focus
In-house fleet management can quickly become a drain on time and resources, especially for businesses without the required technical and compliance expertise.
Leasing can simplify this by outsourcing maintenance, fuel, compliance and reporting to fleet specialists. It also removes the administration and time required on acquisition and disposal that comes with ownership.
It’s not just about convenience - it’s about freeing up your internal team to focus on what drives value for your business.
4. Servicing & Maintenance: Scale brings savings
ORIX negotiates volume discounts with nationwide service networks and those savings are passed on to you.
Bundled options for maintenance, tyres, WOFs, roadside support, and repairs can be included in your lease.
These options help you reduce downtime and eliminate cost surprises - without you having to manage multiple service providers.
5. Strategic Flexibility can outweigh Short-Term Savings
Owning assets outright gives you control - but leasing offers agility:
• No capital burden - Perfect for fast growing or cash-sensitive businesses
• Predictable costs - Bundled services like tyres, WOFs, maintenance, and registration reduce exposure to unexpected expenses
• Scalable fleets - Easy to expand or electrify as needs change
• Simplified compliance - FBT, Road User Charges and licensing handled by experts
• Re-sale risk - Eliminates the risk of potential losses on disposal of your fleet
When Ownership makes sense
For customers who prefer ownership, particularly those with a consistent spread of vehicle expiries or capital investment cycles, the Investment Boost can be used on a rolling basis, allowing a continual benefit from higher first-year depreciation as new assets are added.
However, just keep in mind:
While the Investment Boost accelerates tax deductions in year one, it doesn’t increase the total depreciation over the life of the asset.
In simple terms, you are able to claim more tax depreciation in year one, but less tax depreciation in subsequent years. This makes it more important to consider total cost of ownership and how your asset strategy aligns with your broader financial goals - not just your tax position in year one.
Understanding this timing effect is crucial for long-term planning – and we recommend that you seek advice from your Accountant or Tax Advisor.
Leasing vs Buying: It’s Not Either/ Or
Whether through leasing, ownership or a blended strategy, the best approach is one that supports your broader business goals – not just your tax position in year one.
• Consider your capital strategy
• Forecast your cashflow
• Assess your capacity to manage compliance
• Look beyond year one into the total cost of ownership
The Bottom Line: Leasing Isn’t Just Competitive - It’s Strategic
The Investment Boost is a compelling incentive; however, it doesn’t mean ownership is always the best or only option.
For many businesses, especially SME’s and service-led organisations - leasing offers strategic flexibility, financial predictability and operational support that ownership cannot always match.
At ORIX, we help businesses of all sizes strike the right balance - combining leasing, ownership insights, and fleet expertise to support smarter decisions.
*Disclaimer: This article is for informational purposes only and does not constitute tax or accounting advice. For advice specific to your situation, please consult your accounting or tax advisor
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