Buy Vs Lease Calculator
Buying used is often the most economical way to own a car. If you want brand new wheels, however, should you buy or lease? Use our calculator to estimate the average annual cost of car ownership of both options.
Little in the personal finance world ignites more controversy than the debate to buy or lease a car. (Except, perhaps, the rent vs own debate when it comes to your app德扑圈官方网址home.) Sleepy comment sections suddenly get heated, turning once respectable people into howling Internet trolls, feverishly posting angry, all-caps screeds.

Leasing isn’t wasted money, they scream! Why would you buy a depreciating asset? Your [sic] an idiot.

Buying a used car is the only logical choice, opponents reply. The only thing worse than buying a brand new car is to lease one. You have to be foolish and vain to even consider leasing! They nickel and dime you for every little thing. And god forbid you go over your yearly mileage! Or need to get out of your lease early! Then you’ll be paying out the nose. Is it really so important to you to have a new car every three years? Mindless consumerism! The real value will always be to buy used.

Our position in this debate has long been established, but we understand that different people value different things, and, for some, leasing may make more sense.

But for those who truly just want to know whether buying or leasing will be the best deal over the long term, we present our buy vs lease calculator. If you are considering a brand new car, the buy vs lease calculator will help you weigh the options.

Buying used vs leasing new

Since you cannot lease a used car, it’s more difficult to compare leasing new vs buying used. That said, you could enter the lease payment of a new vehicle and the purchase price of a used one in this calculator. If you do that, keep in mind that our calculations assume much larger off-the-lot depreciation when buying new—a large advantage of buying used is that depreciation rates tend to level off after the first year of ownership.

Get free dealer pricing on your new car Use Edmunds to get dealers to fight for your business! Pick your car and see the best price before you leave app德扑圈官方网址home.

If you in need of loan to purchase your car, here are some offers:

How this calculator works

Its terms are pretty simple:

First, you fill out basic information about the car you’re buying. Enter your purchase price, the amount of cash you have available to pay, as well as the sales tax rate in your state.

The next step is to fill out the Buy Option and the Least Option.

In the Buy Option, you’ll select your loan term, the interest rate you’ll be paying and any additional fees you might pay.

In the Lease Option, you’ll fill out the same fields, plus the security deposit.

Finally, you’ll see both costs lined up in the Summary section.

How to read our results

The results will show you both the total cost to buy (or lease) over the next ten years. The buy option presumes you keep the same car for ten years; the lease options assumes that you lease a new car at the end of each leasing period. It also shows you the real monthly cost for both the buy and the lease option. We arrived at this figure by taking the total cost over ten years and dividing it by 120.

Our assumptions

The calculator assumes equal wear and tear, registration fees, and fuel costs for both the buy and lease option. High mileage on a leased car will lead to overage fees, but high mileage on an owned car will cause further depreciation. Therefore, high mileage will affect both cars equally and for this reason is not considered in our calculations.

We assumed that you could otherwise earn 3% ROI with the money you’re spending on the car (quite a conservative estimate). We also assumed a 15% depreciation of your car per year, and a 60% residual percentage (the value of your vehicle after your lease ends).


Personal finance is personal, as we like to say around here. We can’t tell you whether you should buy or lease a car (though our commenters will be happy to!), but this calculator can give you an accurate understanding of the costs associated with each.

Whether you’re buying or leasing you will need car insurance, get a free quote below:

Read more:

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About the

Total Articles: 49
Lauren Barret is a staff writer at Money Under 30. She has an MFA in creative writing from The Ohio State University, and a BA from Kenyon College. She lives in Portland, Maine.

Article comments

We invite readers to respond with questions or comments. Comments may be held for moderation and will be published according to our comment policy. Comments are the opinions of their s; they do not represent the views or opinions of Money Under 30. Comments have not been reviewed or approved by any advertiser, nor are they reviewed, approved, or endorsed by our partners. It is not our partner’s responsibility to ensure all posts or questions are answered.
Fiona says:

I lease a car for my hubby and I think this is the worst thing I have done..

I lease the car in 2017 for 4 years. I already paid over £15,000 and still have over £17,000 to pay. At the end of 2021 the car will be given back to the car company and I have nothing to show for spending over £30,000. Leasing is very bad in my opinion.

Raymond says:

For me, leasing is the only way to go. When I first started leasing, I could lease three vehicles for nine years for the same cost as buying one vehicle. I like not worring about the vehicle. I never open the hood, if it breaks, I don’t have to pay for it. There are no car repairs. If you want to jump in the car and cross the country, you don’t have to worry if the car will make it or not. The concern and worry is on the car company. If you are buying a new car every few years, you are really just leasing or renting the vehicle. Some of the financial draw backs are, you will pay more for insurance, you will always have a car payment. At the end of the day, it is what makes you feel good, safe and secure. I drove junky vehicles, worked on, stressed over and worried about vehicles most of my life. That could be because they were domestic vehicles, that is another topic.

William says:

Leasing seems to be better in my case. I’m 23, working part-time while getting my masters. Due to me being so young my credit is not that great however I’m working on it and it is much better than many other people my age. Currently, l have a credit score is a 650 which is okay but when it comes to financing I will have higher interest rates. With that being said I’m not going to get 2.7 interest rate. My interest rate will be at 7.52 for a new car and 10.34 for used. When taking all of that into account it seems like it is much better for me to lease than to buy. Then in a few years when my credit is better then buy. What do you all think?


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