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Buy vs Lease Calculator

Compare the true cost of buying versus leasing a vehicle. Find out which option makes more sense for your situation.

Vehicle Details

$

How long to compare total costs

If You Buy

$
%
$

40% of MSRP after 6 years

If You Lease

$
$
$ /mi
mi

Additional Costs (Optional)

%
$

Same for both options

$

For buying (leases often include)

Enter your details and click Compare

to see which option costs less

Buy vs Lease

This calculator compares the total cost of buying a vehicle (including loan interest and depreciation) versus leasing over the same time period. It accounts for resale value, mileage fees, and the opportunity to own at the end.

How to Use

  1. 1 Enter the vehicle price and how long you want to compare (e.g., 6 years).
  2. 2 Enter your financing terms if buying (down payment, rate, term).
  3. 3 Enter the lease terms (monthly payment, term, mileage).
  4. 4 Estimate resale value and your annual miles driven.

FAQ

When is leasing better?

Leasing often makes sense if you want a new car every 2-3 years, drive less than 12-15k miles/year, want lower monthly payments, or can deduct lease payments as a business expense. It's also good if you don't want maintenance hassles.

When is buying better?

Buying is usually better if you keep cars for 5+ years, drive high mileage, want to modify or customize your vehicle, or want to eventually have no car payment. The longer you keep a car after paying it off, the better buying looks.

What about lease-end fees?

Beyond mileage fees, you may face disposition fees ($300-500), excess wear charges, and early termination penalties. This calculator includes mileage fees but not wear fees, which vary widely. Budget an extra $500-1000 per lease to be safe.

How accurate are resale values?

Cars typically depreciate 15-25% in year one and about 10-15% per year after. After 5 years, most cars are worth 35-45% of MSRP. Trucks and certain brands (Toyota, Honda) hold value better. Check KBB or Edmunds for specific models.

Should I put money down on a lease?

Generally, no. If your leased car is totaled or stolen, you lose that down payment. It's usually better to minimize down payment on leases and use that money for a larger emergency fund or investments.

Calculator Limitations

This calculator doesn't include disposition fees, excess wear charges, potential lease incentives, or registration/title differences. Actual costs depend on your location, driving habits, and specific lease terms.