Car Purchase vs. Lease Calculator
Find out the estimated total cost differences between buying a car outright and leasing it for a term.
Additional Information and Definitions
Purchase Monthly Payment
Your monthly loan payment if you choose to purchase the vehicle (or the portion of the payment allocated to the car).
Purchase Term (months)
The total number of months for your auto loan or financing if buying the car.
Down Payment for Purchase
Any upfront amount you pay at the start if you’re buying. This reduces your financed amount.
Estimated Resale Value
What you expect to sell or trade the car for after the term ends. Subtracts from the total purchase cost.
Lease Monthly Payment
What you’d pay each month under the lease agreement.
Lease Term (months)
The duration of the lease in months, after which you return the car or buy it at a residual.
Lease End Fee
Disposition or end-of-lease fee you might pay if you hand the car back.
Extra Mileage Charges
Any fees for going over the lease’s mileage limit or other variable lease end charges.
Decide Your Best Option
Weigh monthly payments, final costs, and potential resale values.
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Purchase vs. Lease Lingo
Key terms to grasp when deciding on a car financing strategy:
Down Payment:
An upfront sum reducing the total financed amount for a purchase, lowering monthly payments.
Resale Value:
The future selling price of the car at the end of the ownership term, effectively recouping some costs.
Disposition Fee:
A lease-end charge for returning the vehicle, often covering cleanup and restocking.
Mileage Charge:
Fee for exceeding the contracted mileage limit in a lease, usually charged per mile over the limit.
5 Fascinating Comparisons for Buyers and Lessees
Every driver’s lifestyle is different, and so is the best financing approach. Here are some lesser-known angles to consider:
1.Upfront vs. Long-Term Costs
A lease often has a lower monthly bill, but the total outlay can rival or exceed a purchase if you lease repeatedly over many years.
2.Mileage Mind Games
Leases impose strict mileage caps; exceeding them racks up fees. Owners don’t have official caps but high miles reduce resale value.
3.Maintenance Factor
Some lease deals include routine maintenance, saving money. Owners foot all maintenance bills but can choose how and when to service.
4.Brand Preferences Matter
Certain brands hold value better, so buying might yield a stronger resale. Others see steep depreciation, favoring lease deals.
5.Lifestyle Flexibility
Leasing suits those who love driving a new model every few years. Purchasing benefits people who keep cars for a long run.