Loans & Debt
Car Lease vs. Buy
Compare the true cost of leasing a vehicle against financing and keeping it.
Your numbers
What the car is worth at lease end, per the lease contract.
Buying costs less
$577
- Lease payment
- $606.98
- Total lease cost
- $24,851
- Loan payment
- $776.86
- Net cost to buy
- $24,274
Leasing usually caps your mileage and charges for wear. Buying leaves you with an asset you own outright once the loan is gone.
Car Lease vs. Buy explained simply
Leasing a car is like renting it. You pay for the part of the car you use up and hand it back. Buying means you pay for the whole thing but you get to keep it. This compares the two over the same stretch of time.
For example
Lease a $42,000 pickup for three years and you might pay $520 a month and own nothing at the end. Buy it and you pay more each month, but after three years you still have a truck worth around $24,000.
Words on this page
Want a second set of eyes on these numbers?
These calculators are estimates for planning purposes and don't account for every detail of your situation. Bring your results to us and we'll pressure-test them against your actual tax picture.
Talk to a CPA