Lease Vs. Buy Car Calculator
Use this lease vs. buy calculator to figure the best deal on your next car. Simply compare your total costs of leasing vs. buying over the term of the arrangement.
This lease or buy calculator estimates costs including "lost interest" due to initial expenses like the down-payment. It also calculates your estimated monthly lease payment and your monthly loan payment for comparison.
Simply enter the data then click "Calculate Lease vs Buy" to arrive at cost figures.
Should You Lease Or Buy A Car?
Which is best, to lease or buy a car?
The correct answer for your situation can’t be generalized because it depends on your individual needs and circumstances.
There are several advantages and disadvantages to both leasing and buying. It is important that you carefully assess your needs and your financial situation before making a decision.
Compare the costs of leasing vs. buying using this Lease vs. Buy Car Calculator and see which strategy works best for your situation. The calculator will reveal all the expenses associated with each option, including your total costs and an average cost per year.
Assess Your Needs
When making a decision to buy or lease a car, start by evaluating your needs. Review your budget and calculate how much you can afford to pay every month (try out the Budget Calculator). The following questions will guide you in evaluating your situation:
Once you’ve answered these questions, take a look at the pros and cons of leasing and buying a car.
Pros Of Leasing
Leasing is simply a way to rent a car. Many consumers lease vehicles they otherwise could not afford to buy. Let’s take a look at some of the pros of leasing a car:
Cons Of Leasing
Leasing isn’t all good news though. Here are some of the downsides:
Pros And Cons Of Buying A Car
If you can afford to buy a car outright, it’s usually a good idea. The Lease vs. Buy Car Calculator will help you make the best decision for your individual circumstances.
Financing a car may require a large down payment – including the debt to go along with it. Because many consumers use a 60-month loan term you have the advantage of owning your car without payments after 5 years.
Your driving habits are another factor – if you drive more than 12,000 to 15,000 miles per year it may be best to buy a car because the higher mileage will increase the cost of a lease.
One major disadvantage of buying a car is you’ll have to shoulder the cost of major repairs when they are needed. Another disadvantage is depreciation – the decreasing value of your car over time.
If you don’t mind owning a vehicle for a long period of time, buying is advantageous – much like owning a home. If you prefer driving new cars with low mileage every year then leasing can be advantageous.
The best decision for you will depend on your financial status, driving habits, and reasons for needing a vehicle.
The first step before making a decision to buy or lease a vehicle is to evaluate your needs and long-term plans. It really boils down to your personal preferences relative to what the lease vs. buy car calculator shows as the comparable costs. There is no single right answer that fits everyone’s situation.
Remember that car dealerships like to lease cars for a reason: there are financial benefits and typically the customer-loyalty rate is higher. What is good for the dealership is probably not good for you since you are on the opposite side of the transaction.
Calculate which option is best for you using the Lease vs. Buy Car Calculator, and appropriately weigh the risks and rewards of each option.
Lease Vs. Buy Car Calculator Terms & Definitions
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Lease vs. Buy Car Calculator
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