Car Lease vs. Buy Calculator
Compare total costs to make the best financial decision
Vehicle Information
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Lease Details
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Purchase Details
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Cost Comparison
Lease
$399/mo$17,364
Upfront Cost:$3,000
Monthly Payments:36 x $399
Term Length:3 years
Purchase
$573/mo$39,382
Down Payment:$5,000
Total Interest:$4,382
Term Length:5 years
Leasing is more cost-effective
Savings: $22,018 over 5 years
Key Differences
Leasing Benefits
- •Lower monthly payments (typically 30-60% less than buying)
- •Drive a new car every 2-3 years with latest features
- •Repairs usually covered under warranty
- •No resale hassle at end of term
Buying Benefits
- •Build equity in the vehicle (ownership after loan payoff)
- •No mileage restrictions (typical leases limit to 10,000-15,000 miles/year)
- •Freedom to customize or modify the vehicle
- •Potential long-term savings if keeping vehicle beyond loan term
Important Considerations
- !Mileage limits: Most leases charge $0.15-$0.30 per mile over allowance (typically 10,000-15,000 miles/year)
- !Wear and tear: Leases may charge for excessive wear when returning the vehicle
- !Early termination: Ending a lease early often comes with substantial penalties
- !Depreciation: New cars lose ~20% value in first year, ~60% after 5 years