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Lease vs Buy Car

Guides

Long-form, plain-English explanations of the money behind cars — the same math our calculators run, shown step by step. Start with the lease-vs-buy framework, then go as deep as you like: every guide links to a calculator where you can run your own numbers.

Lease vs Buy: the Full Answer

The complete decision framework. Why the answer depends almost entirely on how long you keep your cars — and how to settle it with your own numbers.

How Car Lease Math Actually Works

Money factor, residual value, depreciation fee, rent charge: every number on a lease worksheet, decoded step by step so no line can hide from you.

The Break-Even Horizon

The single number that settles most lease-vs-buy debates: the month buying pulls permanently ahead — and which inputs move it most.

Car Depreciation Explained

The value curve that quietly drives every car cost — why the first year hurts most, and how the same curve shapes both lease payments and resale equity.

Lease Mileage Limits & Fees

Allowances, excess-mileage charges, acquisition and disposition fees — the fine print that can quietly change a lease total by thousands.

Negotiating a Car Lease

What's actually negotiable — cap cost, money factor, some fees — what the bank fixes, and why negotiating a monthly payment is how deals hide.

Auto Loan Rates & Credit

What actually drives your APR, why pre-approval is the highest-leverage move, and the term-length trap shown with real worked numbers.

New vs Used: the Depreciation Math

The first owner absorbs about a third of the price in two years on a typical curve — what that buys the second owner, and what it costs them.

Lease End: Return, Buy Out, or Extend?

One comparison decides it — the contract residual against what the car is actually worth. How to run it and act on the answer.

GAP Insurance & Negative Equity

Why you owe more than the car is worth for the first years of a typical loan, what GAP actually covers, and how to shrink the underwater window.

Leasing vs Buying an Electric Car

Same math, three shifted inputs: less predictable depreciation, fast-changing incentives, and different running costs. What that means for you.

Early Lease Termination

The most expensive exit in car finance, and the options that beat it: transfer, buyout-and-sell, and pull-ahead — ranked by real cost.

Reference

The two pages that back every number the guides cite — how the model works, and what every term means.