Net cost over 3 years
Details
About the lease vs buy a car
Leasing looks cheaper because the monthly payment is lower — you’re only paying for the depreciation during the lease, not the whole car. But at the end of a lease you own nothing and start over. When you buy, your payments are higher, yet you keep a car with real resale value. The fair comparison is net cost: everything you pay, minus what the car is still worth at the end.
This calculator does exactly that. It totals your lease payments and drive-off costs, compares them to the cost of financing a purchase minus the car’s resale value, and tells you which option is cheaper over the exact period you plan to drive it.
Leasing tends to win if you trade cars every 2–3 years, want the lowest monthly payment, or drive a car that depreciates quickly. Buying almost always wins if you keep cars a long time, because once the loan is paid off you drive for “free” while still owning an asset. Watch lease mileage limits and wear-and-tear fees, which this estimate doesn’t include.
Frequently asked questions
Is it cheaper to lease or buy a car?
Over the long run, buying is usually cheaper because you keep a car with resale value and eventually stop making payments. Leasing can be cheaper only over short periods or if you replace cars frequently. This calculator compares net cost for the exact number of years you plan to keep the car.
Why is buying compared using net cost?
Because when you buy you still own the car afterward. Net cost subtracts the car’s resale value from what you paid, so you compare it fairly against leasing, where you own nothing at the end.
What resale value should I use?
Most cars retain roughly 50–60% of their value after three years, though it varies a lot by brand and mileage. The calculator defaults to 55% — lower it for fast-depreciating cars and raise it for models that hold value well.
Does this include insurance and maintenance?
No. This focuses on payments, down payments and resale value. Leases often require higher insurance coverage and can add mileage or wear fees, while owners pay for repairs after the warranty ends — factor those in for a complete picture.