Lease vs Buy Calculator
Compare the total cost of leasing versus buying a car to make the best financial decision.
Should You Lease or Buy?
Enter your vehicle details to compare the total cost of each option
Lease vs Buy: Which is Right for You?
When Leasing Makes Sense
- You want lower monthly payments
- You like driving new cars every 2-3 years
- You drive less than 12,000 miles per year
- You don't want to worry about selling the car
- You prefer having warranty coverage
Pros
- Lower monthly payments
- Always drive new car
- Warranty coverage
Cons
- No ownership equity
- Mileage limits
- Wear & tear fees
When Buying Makes Sense
- You plan to keep the car for 5+ years
- You drive more than 15,000 miles per year
- You want to build equity in the vehicle
- You like to customize or modify your car
- You prefer the freedom to sell anytime
Pros
- Build ownership equity
- No mileage limits
- Can sell anytime
Cons
- Higher monthly payments
- Depreciation risk
- Repair costs after warranty
Key Factors to Consider
When deciding between leasing and buying, consider these important factors:
- Total Cost: Look at the complete picture, not just monthly payments
- Driving Habits: High mileage favors buying
- Ownership Length: Longer ownership favors buying
- Cash Flow: Leasing has lower upfront costs
- Vehicle Condition: Leases have wear restrictions
Hidden Costs to Watch
Be aware of these often-overlooked costs:
- Lease: Excess mileage charges ($0.15-$0.30/mile)
- Lease: Wear and tear fees at return
- Lease: Early termination penalties
- Buy: Higher insurance requirements initially
- Buy: Maintenance costs after warranty expires
- Buy: Depreciation (cars lose 20-30% in year 1)