Should I Buy or Lease a Car?
Buying and leasing can both make sense. Buying usually costs more each month, but you own the car at the end; leasing often costs less each month, but you hand the car back. Enter the numbers from each offer to compare what you would pay.
About these numbers
Loan payments are equal monthly payments at a fixed rate. Net cost to buy is the down payment plus all loan payments, minus the car’s expected value when the loan ends; net cost to lease is the down payment plus all lease payments. Options are compared per year of driving. Insurance, maintenance, taxes and fees not entered, lease mileage and wear charges, and the investment value of cash are not included. The interest rate is a hypothetical example, not an offer.
This calculator is a hypothetical illustration for educational purposes only. Results are based on the assumptions you enter and the method described above, may vary with each use and over time, do not reflect any specific investment or the deduction of fees or taxes unless stated, and are not a guarantee of future results. The tool does not consider every investment, account type, or strategy that may be available to you. It is not investment, tax, or legal advice. Investing involves risk, including possible loss of principal. 4:8 Financial does not provide tax or legal advice; please consult your CPA or attorney regarding your specific situation.
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