Lease vs Buy Car Calculator

Compare the total costs and financial implications of leasing versus buying a vehicle. Analyze monthly payments, long-term expenses, and ownership benefits to make an informed decision.

Buying Scenario

Vehicle Price ($)

Down Payment ($)

Loan Interest Rate (%)

Loan Term (months)

Leasing Scenario

Monthly Lease Payment ($)

Lease Down Payment ($)

Lease Term (months)

Annual Mileage Allowance

Expected Ownership Duration (years)

About Lease vs Buy Car Calculator

Lease vs. Buy Decision

The decision to lease or buy a vehicle depends on various financial and lifestyle factors. Buying typically results in ownership equity but requires higher monthly payments and maintenance responsibilities. Leasing offers lower monthly payments and the ability to drive newer vehicles but provides no ownership equity. Understanding the total cost of both options over your intended ownership period is crucial for making an informed decision.

Financial Comparison

Buying Benefits

Build equity in vehicle
No mileage restrictions
Freedom to modify
Potentially lower long-term cost

Leasing Benefits

Lower monthly payments
Newer vehicles more often
Warranty coverage
Simpler trade-in process

Key Considerations

Buying Factors

Credit score impact
Maintenance costs
Insurance requirements
Resale value

Leasing Factors

Mileage limits
Wear and tear charges
Early termination fees
Gap insurance

Frequently Asked Questions

Is it always cheaper to buy than lease?

Not necessarily. While buying often costs less in the long run, leasing might be more economical for those who prefer driving newer vehicles and don't want to deal with maintenance costs of older vehicles. The best choice depends on your financial situation and preferences.

What happens if I exceed the lease mileage limit?

If you exceed the mileage limit on your lease, you'll typically pay a per-mile fee at lease end. These fees usually range from $0.15 to $0.30 per mile and can significantly increase your total cost. Consider purchasing additional miles upfront if you expect to exceed the standard allowance.

Learn More

CFPB Auto Guide

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