Car Lease vs. Buy Comparison Calculator
Compare cumulative cash outflows, retained equity, and net ownership costs between vehicle leasing and financing.
Decision Parameters & Inputs
Lease Option
Purchase / Financing Option
Estimated Comparison Results
Over 36 months, leasing results in an estimated net cost that is $5,202 lower than purchasing ($26,160 vs. $31,362). Lower monthly commitments and zero exposure to vehicle market depreciation make leasing less costly over this short time window under current assumptions.
Metric by Metric Comparison
Side-by-side analysis of monthly commitments, upfront cash requirements, and end-of-term equity.
| Metric | Option ALease Vehicle | Option BPurchase Vehicle | Estimated Difference |
|---|---|---|---|
| Estimated Net Cost (36 Months)Lease: total payments minus $0 equity. Buy: total cash outflows minus retained vehicle asset equity. | $26,160 | $31,362 | $5,202 |
| Monthly Payment CommitmentLease runs 36 mos. Purchase loan runs 60 mos @ 6% APR. | $460 / mo | $638 / mo | $178 / mo |
| Total Cumulative Cash OutflowIncludes down payments, fees, loan/lease payments, taxes, maintenance, and insurance. | $26,160 | $37,487 | $11,327 |
| Estimated Asset Equity at Month 36Estimated vehicle resale market value minus remaining loan balance owed to lender. | $0 | $6,125 | $6,125 |
| Initial Upfront Cash RequiredLease: down payment + acquisition fees. Buy: down payment + state sales tax. | $3,450 | $7,470 | $4,020 |
Cumulative Cost Components
Comprehensive accounting of upfront cash, installments, upkeep, and equity offsets.
Cost Breakdown by Category
Category-level expense and capital outflow comparison over the selected time horizon.
| Category | Lease Vehicle | Purchase Vehicle | Difference |
|---|---|---|---|
| Upfront Capital & Deal Inception FeesLease: Down payment ($2,500) + fees ($950). Buy: Down payment ($5,000) + sales tax. | $3,450 | $7,470 | $4,020 |
| 36-Month Payment StreamSum of regular monthly installments paid during the 36-month horizon. | $16,560 | $22,967 | $6,407 |
| Insurance & Maintenance UpkeepLease maintenance is typically lower due to 3-year factory bumper-to-bumper warranty. | $6,150 | $7,050 | $900 |
| Retained Asset Equity Credit (Subtracted)Vehicle market value minus unpaid loan payoff at end of term. | $0 | $-6,125 | $6,125 |
| Total Outflow | $26,160 | $31,362 | $5,202 |
Assumptions & Limitations
Standard consumer automotive lease duration benchmark.
Based on average vehicle 3-year retention curves across passenger vehicles.
Standard 60-month auto financing structure.
Leased vehicles remain under bumper-to-bumper factory coverage for the entire term.
Frequently Asked Questions
Frequently Asked Questions
Why does leasing typically result in a lower monthly payment?
A lease payment only finances the anticipated depreciation of the vehicle over 36 months plus a financing fee (money factor), rather than amortizing the entire purchase price of the vehicle.
What happens at the end of the term in both options?
At lease termination, you return the keys and walk away with $0 asset equity, subject to condition and mileage checks. In a purchase, you retain ownership of the vehicle and any positive equity (market value minus remaining loan balance).
How do mileage restrictions affect leasing?
Standard consumer leases allocate 10,000 to 15,000 miles per year. Exceeding your allowance incurs per-mile penalties (commonly $0.15 to $0.25 per excess mile) at turn-in.