Compare leasing vs buying a car to find the best option for your budget, driving habits, and lifestyle. Make an informed decision with our comprehensive analysis.
| Scenario | Monthly Payment | Down Payment | Total Paid (6 years) | Equity/Value | Net Cost |
|---|---|---|---|---|---|
| Lease (2 cycles) | $350 | $2,000 | $27,200 | $0 | $27,200 |
| Buy (finance) | $520 | $5,000 | $42,440 | $15,000 | $27,440 |
| Buy (cash) | $0 | $30,000 | $30,000 | $15,000 | $15,000 |
Assumptions: 5% APR, $15k residual value after 6 years, no major repairs. Actual costs vary by vehicle, credit, and market conditions.
| Your Situation | Recommendation | Why |
|---|---|---|
| Drive 20,000+ miles/year | BUY | Lease mileage overage fees are expensive |
| Keep cars 7+ years | BUY | Long-term ownership is more economical |
| Want latest technology | LEASE | Always drive newest models with latest features |
| Limited budget, need reliability | LEASE | Lower payments, warranty coverage |
| Business use (tax deductions) | LEASE | Better tax advantages for business |
| Want to modify/customize | BUY | Lease restrictions prohibit modifications |
Use our car affordability calculator to see what you can afford and compare your options.
It depends on your situation. Leasing offers lower monthly payments and newer cars, but buying builds equity and has no mileage restrictions. Buy if you drive >15k miles/year or want to build equity.
Lower monthly payments, warranty coverage, newer technology, no maintenance worries after warranty, and the ability to drive a more expensive car for less money.
You build equity, have no mileage restrictions, can modify the car, and it's often cheaper long-term if you keep the car for many years.
Lease payments are typically 30-50% lower than loan payments, but you have no equity. Over 6+ years, buying is usually cheaper if you keep the car.