Lease Vs. Buy Car Calculator

You can use this lease versus buy calculator to inform a decision as to whether to buy or lease a vehicle. The choice as to whether to purchase or lease a car can vary according to your unique situation. This online tool provides you with a side-by-side comparison of the costs involved in leasing versus buying a car, thereby allowing you to identify the most cost-effective option for your needs. The lease versus buy calculator is based on a range of the algorithms that are employed in the other calculators you will find on this site; for example, the auto lease calculator, car loan calculator, and car depreciation calculator.

How to use this Calculator

Simple input the correct values in the fields below and click on the "Calculate" button. The calculator will instantly generate a side-by-side view of the costs associated with leasing and buying.

Please note: The calculation assumes that you will achieve the average market value when you sell your car at the end of the lease term. When you use a car loan, you will have full ownership of the car after the loan has been repaid in full.

Lease Vs. Buy Car Calculator



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Benefits of Car Leasing

Leasing a car means that you rent it. One common issue is that people opt to lease a car that they otherwise would not be able to purchase. There are some benefits associated with leasing as opposed to purchasing a car:

  • You will need less money to make a down payment on the car than you would if you were purchasing it on credit.
  • Leasing a car allows you to drive more luxurious and newer models than you would be able to own if you bought a car every few years.
  • A leased car will be covered by a warranty. As such, the cost of any repairs will be covered by the leasing company.
  • You have access to a few options at the end of the lease. For example, you can buy the car, return it to the leasing company, or ask the leasing company to sell it on your behalf.
  • You will have lower sales tax to pay when you lease a car as opposed to purchasing it.

Downsides of Car Leasing

While there are many advantages associated with leasing a car, there are also some downfalls:

  • When you lease the car, you don't accumulate any ownership interest.
  • You are only able to lease a car if you have a strong credit history.
  • In some areas, leasing a car can be very expensive, and the initial down payments may be high. In such cases, you may need to do some research to find the best deals.
  • When you lease a car, you will have mileage restrictions. If you exceed these, you will be required to pay a lump sum at the end of the lease.
  • If you wish to terminate the lease partway through the contract, this can be expensive. As such, before you enter into an agreement, you should make sure that you can afford to make the payments over the full duration of the contract.
  • You can not make any modifications to the vehicle because you are not the legal owner of the car.

Advantages and Disadvantages of Buying a Car

When you purchase a car, you legally own it. As such, you can drive as many miles as you wish per year without worrying about the knock-on impact this will have on the cost of the lease. However, you will need to make a larger down payment, which means that more of your money is tied-up in the vehicle than would be if you legally owned it. Further downsides of buying a car as opposed to leasing it are that you will need to cover the cost of any major repairs and will lose money over time as the value of the vehicle depreciates.

If you are happy to own a car over a longer period of time, purchasing can be the better option. However, if you want to regularly upgrade your car and drive newer vehicles that have low mileage, leasing is preferable.


Before deciding whether to buy or lease a car, you should first evaluate your long-term plans. The option that is best suited to your needs will vary according to your driving habits, financial status, and what you are looking for in a car.


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