How to compare leasing and buying
Add up what each route costs over the same term.
1
Enter the lease quote
Include the monthly payment, term and cash due at signing.
2
Enter the purchase price
Use the negotiated price before finance charges.
3
Estimate the resale value
Use a realistic value for the same age and mileage.
What does this tool do?
Leasing spreads depreciation over a term, while buying converts part of the cost into resale value. Adding the cash due at signing gives a fair total for each route.
The Formula
Lease cost = Payments + Cash due; Buy cost = Price − Resale valueFrequently Asked Questions
What is missing from this comparison?
Finance charges, maintenance, insurance, mileage penalties and taxes. Add those separately for a full picture.
Why is buying often cheaper over long periods?
The car keeps residual value after the loan is repaid, while lease payments continue for as long as a new car is driven.