Decision · Car
Is it cheaper to buy or lease a car?
Compare total cost of ownership — including loan payments and resale value — with leasing and renewing over the same period.
Buy With a loan
Monthly loan payment-
Net cost-
Lease Renew as needed
Total cost-
How we compare
Buy net cost = down payment + all loan payments made during the comparison − (resale value − any remaining loan balance). Lease cost = (drive-off + disposition fee) × number of lease cycles + (monthly lease × total months).
Buy vs lease — frequently asked questions
Is leasing always cheaper than buying a car?
Only in the short term. Lease payments are typically lower because you only pay for depreciation during the lease term, not the whole vehicle. But over 6+ years, buying usually wins because you own an asset with resale value, while leasing means perpetual payments.
What costs does the lease comparison include?
The calculator accounts for monthly lease payment, cap-cost reduction (lease down payment), acquisition/disposition fees, and renewing the lease when it expires. It excludes mileage overages and wear-and-tear charges, which can add up if you drive a lot.
Should I buy or lease for business use?
It depends on tax treatment in your country, expected mileage, and how often you want a new vehicle. Leasing gives predictability and newer cars; buying builds equity and saves money long term. Run both scenarios in the calculator with realistic resale assumptions before deciding.
Financial guides to go deeper
Short, practical reads that pair with our calculators.
Rent vs. Buy: A Complete Financial Decision Guide
Hidden costs, opportunity cost, and the true break-even point of buying a home.
LoansThe Surprising Power of Extra Payments
Real numbers on how $50–$200 extra per month reshapes any long-term loan.
PlanningCompound Interest vs. Loan Interest
Why the same force that builds wealth also keeps debt spiraling.