Car Lease vs Buy Calculator
Compare Lease vs Buy
Compare total costs of leasing versus buying a vehicle
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Formula
Lease Cost = (Monthly Payment x Term + Down) x Number of Leases; Buy Net Cost = Total Payments - Resale Value
Frequently Asked Questions
Is it better to lease or buy a car?
It depends on your situation. Leasing is better if you want lower monthly payments, always drive a new car, and drive under 12,000-15,000 miles/year. Buying is better for long-term savings, unlimited mileage, and building equity. Over 5+ years, buying usually costs less overall.
What is residual value in a lease?
Residual value is the estimated value of the vehicle at the end of the lease term. It is set by the leasing company and is expressed as a percentage of MSRP. Higher residual values mean lower lease payments because you are paying for less depreciation.
What costs are not included in this comparison?
This estimate does not include insurance (often higher for leased cars), maintenance, lease-end fees, excess mileage charges, wear-and-tear charges, or opportunity cost of your down payment. Factor these in for a complete comparison.
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