Lease vs Buy a Car: Payments, Cost, and Ownership
Compare leasing and financing a vehicle with the lease-vs-buy and auto-loan calculators: monthly cost, total cost, and what you own at the end.
Leasing a car usually means lower monthly payments because you pay for the vehicle's depreciation during the term, not its full price. Buying with a loan costs more per month but ends with an asset you own outright. The lease-vs-buy calculator puts both paths side by side over the same period.
The auto-loan calculator fills in the buying side: exact monthly payment, total interest, and how the term length trades payment size against total cost.
Lease vs Buy Calculator
Compare the total cost of leasing versus buying the same vehicle over the same years.
Open calculatorAuto Loan Calculator
Price the financing side: monthly payment and total interest for a purchase.
Open calculatorWhich path fits your situation?
Leasing tends to fit when…
- You drive predictable, low mileage and stay within lease limits.
- You prefer a new car every few years and accept always having a payment.
- You want the lowest monthly outlay for a given vehicle.
Buying tends to fit when…
- You keep cars for many years and want payment-free ownership after the loan ends.
- You drive enough to exceed typical lease mileage caps.
- You want to modify the vehicle or avoid wear-and-tear charges.
Frequently asked questions
Why are lease payments lower than loan payments?
A lease charges you for the depreciation during the lease term plus financing charges (the money factor), not the full vehicle price. A loan amortizes the entire price, so payments are higher but build ownership.
Is leasing ever cheaper long term?
Rarely. Perpetual leasing usually costs more over a decade than buying and keeping a car, because you never reach the payment-free years. Leasing trades long-term cost for convenience and lower short-term payments.