How this number is made
Buying costs the down payment and the loan payments, then you own a car you can sell, and you still owe whatever balance is left. Leasing costs the amount due at signing and the lease payments, and you hand the car back. This page compares those cash costs over the months you type. Tax, mileage penalties, repairs, and the chance the resale is wrong are not in the math.
- The resale is a guess. Change it before you trust the winner.
- The loan can be longer than the months you keep the car. The remaining balance is subtracted from the resale.
Formula
Buy cost = down payment + payments × months + remaining balance − resale. Lease cost = due at signing + lease payment × months.
Worked example
With the figures already in the form, leasing costs less by is $2,649.
Questions
Why might buying look worse?
The resale is low, or the months are short and you have paid mostly interest. Raise the resale and look again.
Where are taxes and fees?
Not included on either side. Add them to the down payment or the amount due at signing if you want them in the cash.