Lease vs Buy Car Calculator

Compare the total cost of leasing versus buying a vehicle to see which option is better for you.

How the Comparison Works

This calculator compares total costs over your selected period:

Buying costs: Down payment + loan payments + interest - resale value.
Leasing costs: Down payment + monthly payments + end-of-lease fees.
The key difference: When buying, you own an asset at the end. With leasing, you have nothing.
Net worth impact: Shows the true difference including asset value.

If you lease for 5 years, you'll need 2 lease terms (e.g., two 36-month leases or adjust payments).

Is it better to lease or buy a car?: It depends on your situation. Leasing offers lower monthly payments and a new car every few years, but you never own anything. Buying costs more monthly but you build equity and can keep the car as long as you want. If you drive less than 12,000 miles/year and like new cars, leasing may be better. If you keep cars 5+ years, buying usually wins.
Why are lease payments lower than loan payments?: With a lease, you only pay for the car's depreciation during your lease term (usually 3 years), not the full price. You're essentially renting it. With buying, your payments cover the entire vehicle cost. However, at the end of a lease you have nothing, while buying gives you an asset.
What are the hidden costs of leasing?: Watch out for: mileage overage fees ($0.15-0.30/mile over limit), excess wear charges, disposition fees ($300-500), early termination penalties, and higher insurance requirements. These can add thousands to your total cost.