Is it better to lease or buy a car?

It depends on your goals. Leasing offers lower monthly payments and lets you drive a new car every few years, but you build no equity. Buying costs more monthly but builds equity and has no mileage limits.

What is the main financial difference between leasing and buying?

When you lease, you pay for the vehicle's depreciation during the term and return it. When you buy, you pay the full price plus interest but own an asset you can sell or trade in later.

Does leasing make sense if I drive a lot of miles?

Usually no. Leases include mileage limits (typically 10,000-15,000 miles per year) and charge steep per-mile overage fees. If you drive more than that, buying is typically more cost-effective.

Can I negotiate a car lease?

Yes. You can negotiate the capitalized cost (selling price), money factor (interest rate), mileage allowance, and down payment. Always negotiate the price before discussing lease terms.

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Lease vs. Buy Calculator

Compare the total cost of leasing versus buying over the same time period. See which option makes more financial sense based on your driving habits and ownership goals.

Lease Scenario

Enter the details for your lease offer.

Monthly Lease Payment

Due at Signing (Down Payment + Fees)

Buy Scenario

Enter the details for purchasing with a loan.

Monthly Loan Payment

Down Payment + Taxes & Fees

Estimated Resale Value at End of Term

Comparison Term (Months)

Compare over the exact same time period for accuracy.

Cumulative Cost Comparison

Visualizing your out-of-pocket cash flow over 36 months.

Total Cost to Lease

$18,200

Over 36 months

Lower monthly payments
Always under warranty
Mileage restrictions apply
No equity or ownership at the end

Total Cost to Buy

$9,400

Over 36 months (after selling)

Build equity over time
No mileage limits
Higher monthly payments
Responsible for repairs after warranty

Which is right for you?

If the Total Cost to Buy is lower, purchasing is generally the better financial decision long-term. However, if you prefer driving a new car every few years, value lower monthly payments, and drive less than 12,000 miles a year, leasing might fit your lifestyle better.

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