What You Need to Know
💡Why This Calculator Matters
Leasing can mean lower payments but you build no equity. Understanding lease math reveals when it makes sense and when buying wins.
👤Who Needs This
Car shoppers comparing lease vs. buy, those who want a new car every few years, or business owners considering vehicle options.
🎯Key Insight
Leasing costs more long-term because you always have a payment. Buying and keeping a car for 10 years is almost always cheaper.
⚠️Common Mistake
Exceeding mileage limits. Going over by 5,000 miles at 25¢/mile costs $1,250 at lease end - often a surprise expense.
✅Pro Tip
Negotiate the selling price (capitalized cost) just like buying. A lower cap cost means lower payments. Don't focus only on monthly payment.
📊Real-World Example
Scenario: $35,000 car, 36-month lease
Lease: $350/month × 36 = $12,600 + $2,000 upfront. Buy with 5-year loan: $650/month × 60 = $39,000
Lease costs less monthly but after 6 years (2 leases vs. 1 buy), leasing cost $29,200 with no car. Buying: $39,000 but you own a car worth ~$15,000.
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