Lease vs Buy Car Calculator
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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.
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