Should You Lease or Buy a Car?
Compare leasing and buying over the same timeline using total cost, resale value, mileage, and ownership goals.
A fair three-year comparison
Use actual offers and a conservative resale estimate; neither future market value nor end-of-lease charges are guaranteed.
Compare the same period
A lease and a purchase can look very different when their terms are not aligned. Choose one horizon and count cash paid during that period.
Include what happens at the end
A buyer may have resale value and a remaining loan balance. A lessee may face disposition, mileage, or wear charges and owns no vehicle.
- Include drive-off cash.
- Include taxes and fees.
- Subtract realistic net resale proceeds from buying cost.
Test the uncertain assumptions
Run a lower resale value and higher mileage charge. A decision that changes with a small adjustment deserves more margin.
Frequently asked questions
Is leasing always cheaper monthly?
Often, but not always. A lower monthly payment does not prove a lower total cost.
Should I make a large lease down payment?
It lowers the payment but puts more cash at risk and may not improve the overall lease economics.