Automotive
Lease vs Buy Calculator
Compare leasing versus financing a car over the same term.
Side-by-side total cost comparison of leasing and financing the same vehicle. Factors in residual, payments, and ownership equity.
Net Comparison
Buy is cheaper
- lease
- $15120 total leased (no equity)
- buy
- $23400 paid, $18000 equity = $5400 net
- diff
- $9720 difference
Formula and method
Net Buy = Total Payments - Residual Value
Compares cumulative payments minus residual equity for buying.
Worked examples
$35k 3-year
- Vehicle Price ($):
- 35000
- Term (months):
- 36
- Lease Monthly Payment ($):
- 420
- Finance Monthly Payment ($):
- 650
- Residual Value at Term End ($):
- 18000
Net Comparison: Buy is cheaper
Assumptions and limits
- Same down payment
- No early termination
This tool provides an educational estimate. Rules, rates and personal circumstances can change the answer. Review the assumptions before relying on a result. Report a correction.
Common mistakes to avoid
- Forgetting maintenance/insurance/registration are similar in both.
- Ignoring lease mileage caps.
Frequently asked questions
When does leasing win?
When you upgrade frequently and rapid depreciation eats equity.
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