Lease vs Buy Car Calculator
Compare the true cost of leasing vs buying a car over time.
Important Notice
These calculators are for educational and informational purposes only. Results are estimates based on the information you provide and should not be considered financial, tax, or investment advice. Your actual results may vary. For personalized guidance, please consult a qualified financial advisor, tax professional, or other appropriate expert.
People Also Ask
Is it better to lease or buy a car?
Buying typically favors those who keep cars 5+ years, drive many miles, or want to customize. Leasing typically favors those who prefer new cars every 2-3 years, drive under 12,000 miles/year, and want lower monthly payments without resale hassle.
Why are lease payments lower than loan payments?
With a lease, you only pay for the car's depreciation during the lease term, not the full value. A $40,000 car that depreciates to $25,000 after 3 years costs you the $15,000 difference plus fees, not the full $40,000.
What happens at the end of a lease?
Three options: return the car (pay any excess mileage or wear fees), buy it at the residual price, or start a new lease. If market value exceeds the residual, the buyout option may have equity value.
How many miles can I drive on a lease?
Standard leases allow 10,000-15,000 miles per year. Excess mileage fees are typically $0.15-0.30 per mile. High-mileage drivers (20,000+ miles yearly) often find buying more economical due to these excess fees.
Can I negotiate a car lease?
Yes. Negotiate the capitalized cost (vehicle price), money factor (interest rate), acquisition fee, and residual value. Lower cap cost and money factor reduce payments. Higher residual reduces payments but may affect end-of-lease options.
Is leasing a waste of money?
Not necessarily. Leasing costs more per mile of usage but provides a new car with warranty coverage and lower monthly payments. If you would buy new every 3-4 years anyway, leasing may cost about the same or less.