The Real Cost of Each Path

Leasing and buying are different products, not just different payments. Leasing pays for the car's depreciation over the lease term plus financing — you walk away with nothing. Buying pays the full price minus what the car is still worth when you sell. This calculator nets both against the same 3-year horizon so the comparison is apples to apples.

When Leasing Wins

Leasing wins when you change cars frequently, want minimum monthly outlay, or drive a car with strong residual values. The lease payment reflects only the portion of value you consume. For business owners, lease payments are often fully deductible, which can flip the math in leasing's favor.

When Buying Wins

Buying wins over the long run — after 5+ years the loan is gone and you own the car outright. It also wins for high-mileage drivers (no per-mile penalties) and for anyone who values the equity. If you keep cars 7–10 years, buying typically saves tens of thousands of dollars versus repeated leasing.