Auto Finance
Buy vs. Lease a Car
Compare the true net cost. Leasing often means lower monthly payments, but buying builds equity. Which is mathematically better for you?
Vehicle Details
Buying Assumptions
Leasing Assumptions
~6.0% APR
The Winner (Net Cost over 3 years)
Buying
Saves you $104 in true net cost (factoring in equity).
Head-to-Head Breakdown
Buy Scenario
Monthly Payment
$685
Total Paid In
-$29,653
Equity (Car Value - Loan)
+$6,627
True Net Cost
$23,026
Lease Scenario
Monthly Payment
$504
Total Paid In
-$23,130
Equity
+$0
True Net Cost
$23,130
While leasing has a lower monthly payment, you turn the car in with $0 equity. When buying, your monthly payment is higher, but you own an asset worth $22,000 at the end of 3 years.