Lease vs Buy Comparison Calculator
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This tool is part of these step-by-step guides. Follow along for personalized help.
Frequently Asked Questions
Is it better to lease or buy a car?
It depends on your needs. Leasing offers lower monthly payments, new vehicles every 2-3 years, and minimal maintenance costs, but no ownership and mileage restrictions. Buying provides ownership, equity, no mileage limits, and long-term savings, but higher monthly payments and maintenance responsibilities.
What are the disadvantages of leasing?
Disadvantages include: no ownership at lease end, mileage restrictions with costly overage fees ($0.15-$0.30/mile), wear and tear charges, early termination fees, continuous payments (never pay off), and higher long-term costs if you keep leasing.
Can I negotiate a lease like buying?
Yes, you can negotiate the vehicle price (cap cost), money factor (interest rate), and residual value. Focus on negotiating the vehicle price first, as this affects all lease calculations. Money factor and residual are often less negotiable.
What happens at the end of a lease?
At lease end, you have three options: return the vehicle (pay any disposition fees and excess wear/mileage), buy the vehicle at the residual value, or lease a new vehicle. Most people return or lease new, as the residual value is often high.
