Car Lease vs Buy Calculator

Car Lease vs Buy is evaluated from Car MSRP / Purchase Price, Monthly Lease Payment and Lease Term. The calculation reports Total Lease Cost, Total Buy Cost and Lease Advantage.

Results

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About the Car Lease vs Buy Calculator

Car Lease vs Buy is treated here as a quantitative relation between Car MSRP / Purchase Price, Monthly Lease Payment, Lease Term and Due at Signing and Total Lease Cost, Total Buy Cost, Lease Advantage and Car Value at Lease End.

The calculator uses a multi formula configuration. Each reported value is read as a direct evaluation of the stored rules with the declared field formats and units.

Formula basis:
Lease total cost = (monthly payment x term) + due at signing
Buy total cost (net) = down payment + (monthly payment x term) - estimated resale value at end of period
Lease advantage = buy net cost - lease total (positive = buying costs more = lease wins)

Interpret the outputs in the order shown by the result fields. Optional inputs affect only the outputs that depend on those variables.

Formula & How It Works

The calculation applies the following relations exactly as recorded in the metadata:

Lease total cost = (monthly payment x term) + due at signing
Buy total cost (net) = down payment + (monthly payment x term) - estimated resale value at end of period
Lease advantage = buy net cost - lease total (positive = buying costs more = lease wins)

Each output field is produced by substituting the supplied inputs into the relevant relation and then applying the declared rounding or text format.

Worked Examples

Example 1: New BMW 3 Series: $48,000 MSRP, lease $599/mo 36 months vs. buy at 7% APR

Inputs

car_price: 48000 lease_payment: 599 lease_months: 36 months lease_due_at_signing: 3500 buy_down: 5000 buy_rate: 7 depreciation_pct: 42
Total Lease Cost: $25,064. Total Buy Cost: $24,958. Lease Advantage: $106. Car Value at Lease End: $27,840

With Car MSRP / Purchase Price = 48,000, Monthly Lease Payment = 599, Lease Term = 36 months and Due at Signing = 3,500 as the stated inputs, the result is Total Lease Cost = $25,064, Total Buy Cost = $24,958 and Lease Advantage = $106. Each value corresponds to the declared output fields.

Example 2: Toyota Camry: $29,000, lease $350/mo 36 months vs. buy

Inputs

car_price: 29000 lease_payment: 350 lease_months: 36 months lease_due_at_signing: 2500 buy_down: 3000 buy_rate: 6.5 depreciation_pct: 35
Total Lease Cost: $15,100. Total Buy Cost: $12,837. Lease Advantage: $2,263. Car Value at Lease End: $18,850

With Car MSRP / Purchase Price = 29,000, Monthly Lease Payment = 350, Lease Term = 36 months and Due at Signing = 2,500 as the stated inputs, the result is Total Lease Cost = $15,100, Total Buy Cost = $12,837 and Lease Advantage = $2,263. Each value corresponds to the declared output fields.

Example 3: Honda Civic: $26,000, lease $280/mo 24 months vs buy

Inputs

car_price: 26000 lease_payment: 280 lease_months: 24 months lease_due_at_signing: 1500 buy_down: 3000 buy_rate: 7 depreciation_pct: 30
Total Lease Cost: $8,220. Total Buy Cost: $9,514. Lease Advantage: $1,294. Car Value at Lease End: $18,200

With Car MSRP / Purchase Price = 26,000, Monthly Lease Payment = 280, Lease Term = 24 months and Due at Signing = 1,500 as the stated inputs, the result is Total Lease Cost = $8,220, Total Buy Cost = $9,514 and Lease Advantage = $1,294. Each value corresponds to the declared output fields.

Example 4: Electric Volkswagen ID.4: $43,000, lease $399/mo 36 months vs buy

Inputs

car_price: 43000 lease_payment: 399 lease_months: 36 months lease_due_at_signing: 4000 buy_down: 5000 buy_rate: 7.5 depreciation_pct: 48
Total Lease Cost: $18,364. Total Buy Cost: $25,193. Lease Advantage: $6,829. Car Value at Lease End: $22,360

With Car MSRP / Purchase Price = 43,000, Monthly Lease Payment = 399, Lease Term = 36 months and Due at Signing = 4,000 as the stated inputs, the result is Total Lease Cost = $18,364, Total Buy Cost = $25,193 and Lease Advantage = $6,829. Each value corresponds to the declared output fields.

Common Use Cases

  • Compare 3-year lease to buying a car and selling after 3 years
  • Determine total cost of leasing vs. financing over 5 years
  • Decide whether a lease or purchase makes sense for your driving habits