Lease vs Buy Calculator

The arithmetic

Lease total = down payment + monthly × term → 2,500 + 350 × 36 = $15,100.

Loan total = down payment + monthly × term → 3,000 + 450 × 60 = $30,000.

Why that comparison is incomplete

The lease total is the cost of using the car for three years; the loan total buys an asset you still own after five. To compare fairly, subtract the resale value from the purchase price. A $30,000 car worth $12,000 after five years cost $18,000 — closer to the lease than the raw totals suggest, and still more expensive in this example.

Worked examples

Defaults → lease $15,100 vs loan $30,000
Lease with $0 down at $350 → $12,600
Loan with 20% down, $28,000 price, $10,000 resale → net $20,000
Lease for 48 months at $350 with $2,500 down → $19,300

What the numbers leave out

• Mileage limits. Excess kilometres are charged at the end, often $0.15–0.25 each.
• Wear and tear. Lease returns have standards; tyres and dents can cost hundreds.
• Insurance and tax. Often higher on a leased car because the lessor requires full coverage.
• Maintenance. A new car under warranty costs less to run; an older owned car costs more.
• Disposal fees. Some leases add a turn-in fee regardless of condition.

Leasing suits someone who wants a new car every three years and drives predictable miles. Buying wins over a long horizon because the asset keeps value after the loan ends.

The comparison hinges on what happens at the end. Leasing pays depreciation and a rent charge for three years and returns the car; buying pays down principal and keeps an asset at trade-in. On these defaults the lease costs $15,100 against $30,000 for the loan over its longer term, which looks cheaper until the equity in the owned car is counted. Mileage limits, wear charges and the residual value decide which way a real comparison falls.

Frequently Asked Questions