Loading page
Lease vs. Buy a Car
A lease can reduce the near-term payment, while buying can build ownership value. The right comparison uses the same vehicle, time horizon, mileage, cash due, and end-of-term assumptions.
Compare your own offersWhat decides it
Compare total cash paid over the same horizon, then account for the vehicle value you keep when buying and any lease-end costs you may owe.
Monthly commitment
Often lower for the same vehicle
Often higher during the loan term
End of term
Return, buy, or replace the vehicle
Keep, sell, or trade the vehicle
Mileage and condition
Contract limits may create charges
Affects resale value rather than a contract fee
Equity
Usually none unless the buyout is favorable
Vehicle value less remaining loan balance
Before deciding
Make the comparison fair
- Use the same vehicle price and time horizon.
- Include acquisition, disposition, documentation, and registration costs.
- Estimate annual mileage honestly.
- Compare the buy option’s remaining vehicle value and loan balance.
Calculators for this decision
AutomotiveAuto Lease
Estimate a vehicle lease payment, drive-off amount, taxes, and total lease cost.
Open calculator AutomotiveCar PaymentEstimate your monthly car payment, amount financed, taxes, total interest, and the effect of your trade-in.
Open calculator AutomotiveCar Running CostAdd the recurring cash costs of owning a car, then inspect depreciation separately so you do not count the same vehicle cost twice.
Open calculatorUnderstand the tradeoffs
Is leasing always cheaper per month?
Often, but not always. Lease money factors, residual values, fees, mileage, taxes, and cash due can erase the expected difference.
How should a down payment be compared?
Spread every upfront dollar across the comparison horizon. A large lease down payment lowers the displayed payment but remains money spent.