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Lease vs Buy Car

Should you lease or buy your next car?

Run the real numbers before you sign the lease. Every calculator here publishes its formulas, its assumptions, and a worked example you can check by hand — no payment-vs-payment hand-waving.

Start with the one question that decides it: how long do you keep a car?

Your holding period moves the answer more than the money factor, the rate, or the down payment. Pick yours and the calculator opens with it already set.

The 30-second answer

Leasing wins if you replace cars every two or three years; buying wins if you keep them. A lease charges you for the steepest part of a car's depreciation and hands the car back, so you never stop paying and never build equity. A loan ends — and every payment-free month after that is money the lease would still be taking.

On this site's documented default scenario, buying overtakes back-to-back leasing at about month 43 (3.6 years of ownership), and by year six it comes out roughly $7,204 cheaper. Shorten the horizon to three years — a single lease term — and leasing is ahead by about $3,406 instead.

Those figures come from editable assumptions, not live market rates, and the honest comparison invests the monthly cash-flow difference so both paths deploy identical money. Your own numbers — your mileage, your money factor, your resale expectation — can move the crossover by years, which is exactly what the lease vs buy calculator is for. Every formula and default is published on the methodology page.

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Guides that show the math

Why trust these numbers?

Every formula is published on our methodology page with a worked example you can verify by hand, every default lists its rationale, and the calculation engine is covered by automated tests against those same examples. We show estimates as estimates — and always tell you to confirm the dealer's actual figures. Read our editorial policy or about page.