← All calculators

Car Lease vs. Buy

Leasing rents the car's best years; buying pays full price but keeps the machine. The honest comparison needs a time horizon.

Leasing

When a lease ends, you sign another: the down payment repeats each cycle, with payments rising a bit on each new car.

Buying

Cars lose ~15–20% in year one, then ~10–15%/yr. The car's value at your horizon comes back to you when you sell.

Leased cars stay under warranty; owned cars get older. Applied after year 4.

Horizon

Leasing total cost
Buying net cost
Difference
Average monthly
lease vs buy over the horizon

Cumulative net cost by year

Lease (and re-lease) Buy (cost minus resale value)

About this calculator

This lease vs. buy calculator compares the total cost of leasing against buying over a time horizon you choose. Buying pays full price but keeps the resale value; leasing only pays for the years you drive but starts a new down payment each cycle.

Frequently asked questions

Is leasing or buying a car cheaper?

Over a short horizon leasing can cost less per month, but buying and keeping the car usually wins over longer periods because you retain the resale value.

Why does the time horizon matter?

Leasing repeats its costs every few years, while a bought car's cost is front-loaded and then drops. The longer you keep a car, the more buying pulls ahead.

Does buying build equity in a car?

Yes, in the sense that you own a depreciating asset you can sell. A lease leaves you with nothing at the end of the term.