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
公式
## 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.
计算示例
$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
常见问题
When does leasing make sense?
Leasing works if you want a new car every 2-3 years, drive under 12,000 miles/year, need a low monthly payment, or use the car primarily for business (tax deductions).
What hidden costs does leasing have?
Excess mileage fees ($0.15-0.30/mile), wear-and-tear charges, early termination penalties, and acquisition/disposition fees that can add $1,000-$3,000.
How long should I keep a purchased car to maximize value?
Keeping a car 7-10 years and paying off the loan in 4-5 years gives you 3-5 years of payment-free ownership, which is where buying really wins over leasing.
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