Auto Lease vs Buy Calculator
Compare leasing a car with buying it using a loan. See the total cost over the lease term, the equity you would have left and the real monthly cost of each option.
Lease or Buy Your Car?
Enter the car price, your lease quote and your loan details. The calculator compares both options over the lease term and shows which has the lower net cost.
Lease vs Buy Comparison
Both options are compared over the same period.
Lease or Buy?
Key factors behind the decision
Net Cost, Not Just Payments
A lower monthly lease payment does not always mean a lower cost. Buying builds equity, which is the car’s value minus what you still owe.
Resale Value
A car that holds its value makes buying more attractive. Rapid depreciation can leave you with little or negative equity when the period ends.
How Long You Keep It
Leasing suits people who like a new car every few years. Buying usually wins the longer you keep the car after the loan is paid off.
Mileage and Wear
Leases usually set mileage limits and charge for excess wear. High-mileage drivers often find owning more cost-effective.
Lease vs Buy Comparison
A general overview of how leasing and buying compare on the factors that matter most.
| Factor | Leasing | Buying | Typically Favours |
|---|---|---|---|
| Monthly payment | Usually lower | Usually higher | Leasing |
| Ownership and equity | None at the end | Build equity in the car | Buying |
| Mileage | Limits and excess charges | No limits | Buying |
| Customisation | Restricted | Free to modify | Buying |
| Repairs | Often covered by warranty | Your cost after warranty | Leasing |
| New car every few years | Easy to switch | Need to sell or trade in | Leasing |
| Long-term cost | Payments never end | Payments stop after the loan | Buying |
Lease vs Buy Calculator FAQ
Answers to the most common questions about leasing and buying a car.
Leasing usually has a lower monthly payment, but buying often costs less overall if you keep the car for many years because you build equity and eventually have no payments. The answer depends on the price, interest rate, resale value and how long you keep the car.
It compares both options over the lease term. For buying, it adds your deposit, loan payments and extra maintenance, then subtracts the equity you would have after selling the car and paying off any remaining loan. For leasing, it adds the upfront payment, monthly payments and end-of-lease fees.
Equity is the car’s resale value minus the amount you still owe on the loan. Positive equity means the car is worth more than the debt. Negative equity, sometimes called being upside down, means you owe more than the car is worth.
Common extras include mileage limits with excess mileage charges, wear and tear charges, early termination fees, a disposition fee at the end and insurance requirements. This calculator includes an end-of-lease fee, but check your contract for other charges.
No. It is an educational estimate based on the figures you enter. It does not include tax, insurance, mileage penalties or changes in the car’s value, so check real quotes and consider speaking to a qualified adviser.