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Buy vs Lease Calculator

Compare the total cost of buying vs leasing a vehicle. Analyze long-term financial implications and make informed decisions.

Vehicle Details

20%
%
months
5 years
years

Comparison Results

Leasing
Recommended Option
Saves $2,500 over 5 years
$45,000
Buy Total Cost
$42,500
Lease Total Cost

Monthly Payments

Buy Payment: $750
Lease Payment: $450
Monthly Difference: $300

Fee Frequency Guide

One-time: Paid once at purchase/lease start
Monthly: Recurring monthly payment
Yearly: Annual recurring payment

Cost Breakdown

Buy Option

Down Payment (one-time): $7,000
Loan Payments (total): $45,000
Insurance (monthly × 60): $7,200
Maintenance (monthly × 60): $4,800
Taxes & Fees (one-time): $2,500
Registration (yearly × 5): $1,500
Title & License (one-time): $200
Documentation Fee (one-time): $150
Extended Warranty (one-time): $0
Gap Insurance (one-time): $0
Total: $64,000

Lease Option

Down Payment (one-time): $2,000
Lease Payments (monthly × 36): $16,200
Insurance (monthly × 60): $9,000
Maintenance (monthly × 60): $1,200
Taxes & Fees (one-time): $800
Registration (yearly × 5): $750
Acquisition Fee (one-time): $595
Documentation Fee (one-time): $150
Disposition Fee (one-time): $350
Wear & Tear (one-time): $500
Over Mileage (per mile): $0
Total: $28,400

Equity Analysis

Buy - Vehicle Value: $15,000
Buy - Remaining Loan: $0
Buy - Net Equity: $15,000
Lease - No Equity: $0

Recommendations

  • • Consider your driving habits and mileage needs
  • • Factor in maintenance costs and warranty coverage
  • • Think about long-term ownership vs flexibility
  • • Compare total cost of ownership, not just payments

Buy vs Lease: Key Differences

The decision to buy or lease a vehicle depends on your financial situation, driving habits, and long-term goals. Each option has distinct advantages and considerations.

Buying Advantages:

Ownership

You own the vehicle and can keep it as long as you want

Equity

Build equity in the vehicle over time

No Mileage Limits

Drive as much as you want without penalties

Customization

Modify the vehicle to your preferences

Leasing Advantages:

Lower Payments

Generally lower monthly payments than buying

Newer Vehicles

Drive newer vehicles more frequently

Warranty Coverage

Usually covered under warranty for the lease term

Flexibility

Easy to switch vehicles every few years

When to Consider Each Option:

• Buy if: You drive a lot, want to keep the vehicle long-term, or prefer ownership

• Lease if: You want lower payments, prefer newer vehicles, or drive under 15,000 miles/year

• Consider total cost: Include all expenses like insurance, maintenance, and depreciation

• Factor in lifestyle: Your driving habits and vehicle preferences matter