Lease Details
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Buy Details
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Lease vs Buy Comparison
Total Cost to Lease
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Net Cost to Buy
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Total Lease Payments—
Total Buy Payments (during lease period)—
Vehicle Resale Value (at lease end)—
Remaining Loan Balance (at lease end)—
Lease vs Buy: The Real Numbers
Leasing a car is essentially renting it — you pay for the depreciation during the lease period and hand it back at the end. Buying means you own the asset, which retains some value. The financial comparison depends heavily on how long you keep the car and what the resale value is.
When Leasing Makes Sense
- You want to drive a new car every 2–3 years
- You drive under the mileage limit (typically 10,000–15,000 miles/year)
- The car is for business use (lease payments can be deducted)
- You don't want to deal with repairs as the car ages
When Buying Makes More Sense
- You plan to keep the car 5+ years (paying off the loan builds equity)
- You drive more than the mileage limit (overage fees add up quickly)
- You want full ownership with no restrictions on modifications
- Long-term cost matters more than monthly payment size
Frequently Asked Questions
What happens if I go over the mileage limit on a lease? ▼
Most leases charge $0.15–$0.30 per mile over the agreed limit. At $0.20/mile and 5,000 miles over the limit over 3 years, that's a $1,000 charge at lease end. If you regularly drive more than 15,000 miles/year, factor in overage costs or negotiate a higher mileage limit upfront (which increases the monthly payment but may be cheaper than paying overage fees).
Can I buy the car at the end of a lease? ▼
Yes — most leases include a purchase option at a pre-set residual value. This can be a good deal if the car's market value exceeds the residual (meaning the leasing company underestimated its value), or if you've grown attached to the vehicle. Check the car's market value on Carmax or KBB before deciding whether the buyout price is a good deal.