Lease vs. Buy Calculator Guide

When it comes to getting a new vehicle, the choice between leasing and buying depends on your driving habits, budget, and how often you like a new car.

Understanding the Difference

Leasing (Renting the Car)

Lower Monthly Payments: You only pay for the car's depreciation during the lease term.
Always Under Warranty: Most leases last 3 years, covering the most reliable years of the car.
Flexibility: Easily switch to a new model every few years.
Cons: You never own the car, there are mileage limits, and it's more expensive in the long run.

Buying (Financing to Own)

Owner Equity: Every payment builds ownership. Eventually, you have no monthly payment.
No Restrictions: Drive as many miles as you want and customize the car.
Lower Long-Term Cost: Once the loan is paid off, your only costs are maintenance and insurance.
Cons: Higher monthly payments and the risk of expensive repairs once the warranty expires.

The Mathematical Comparison

Our calculator compares the Total Cost of Ownership over a set period:

Lease Total = (Monthly Payment × Term) + Down Payment + Fees - (End Value of Car - 0 [Since you don't own it]) Buy Total = (Monthly Payment × Term) + Down Payment + Interest - End Value of Car

Which is Right for You?

Choose Lease IF: You want the lowest monthly payment, you drive less than 12,000 miles per year, and you enjoy having the latest technology and safety features.
Choose Buy IF: You plan to keep your car for 5-10 years, you drive long distances, and you want to eventually eliminate your monthly car payment entirely.

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Disclaimer: Vehicle depreciation and interest rates vary by make, model, and credit score. This calculator provides a cost comparison based on user-provided estimates.

Lease vs. Buy (Auto TCO)

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Calculated by CalcuFinance Team

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