Car Lease vs Buy Calculator
Compare the total cost of leasing versus buying a car over the same period including payments, depreciation, and equity.
Total Lease Cost
$12,600
Total Lease Cost vs Monthly Lease Payment
Leasing vs Buying a Car
Leasing has lower monthly payments but builds no equity. Buying costs more monthly but you own an asset at the end.
Comparison
Total Lease Cost = Monthly Payment x Term Months (you own nothing at the end)
Net Buy Cost = Total Payments - Residual Value (you keep the car)
The true comparison is total lease outflow vs (total loan payments minus the car's remaining value). If the car retains value well, buying usually wins long-term.
Example Calculation
$35,000 car, $350/mo lease vs $600/mo loan, 36-month term, 55% residual.
- 01Total lease = $350 x 36 = $12,600 (nothing to show for it)
- 02Total loan payments = $600 x 36 = $21,600
- 03Car value at end = $35,000 x 55% = $19,250
- 04Net buy cost = $21,600 - $19,250 = $2,350
- 05Buying costs $10,250 less when accounting for equity
Frequently Asked Questions
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