Lease vs Buy Calculator
Compare the true total cost of leasing versus buying a car over the same period.
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Frequently Asked Questions
Is it better to lease or buy a car?
Buying is better long-term — you build equity, have no mileage limits, and eventually own the car free and clear. Leasing is better if you want lower monthly payments, a new car every 2-3 years, or always want to be under warranty. Leasing costs more over the long run but provides flexibility and predictable costs.
What are the hidden costs of leasing?
Watch for: acquisition fee ($500-$1,000), disposition fee at end ($300-$500), excess mileage charges ($0.15-$0.30/mile over limit), wear-and-tear charges, gap insurance requirement, early termination penalties (very expensive), and the fact that you have nothing to show for payments at the end.
What is a money factor in a lease?
The money factor is the lease equivalent of an interest rate. To convert to APR multiply by 2,400. A money factor of 0.00125 = 3% APR. A good money factor is below 0.0020 (4.8% APR). Always ask the dealer for the money factor — they are not required to disclose it upfront.