The table below illustrates a typical financial comparison for a $35,000 vehicle over a 36-month period. Financial Factor Leasing a Vehicle Buying with a Loan Lower (covers depreciation only) Higher (covers full vehicle cost) Upfront Costs First month + security deposit Down payment + taxes and fees Vehicle Ownership No ownership; returned at term end Full ownership after loan payoff Mileage Limits Strict limits (typically 10k-15k/year) Unlimited mileage Wear & Tear Charges applied for excess damage You are responsible for all repairs Long-Term Cost More expensive (perpetual payments) Cheaper (asset retained after payoff) 🔑 Key Inputs for Your Calculator
: The cost of borrowing for both options. lease versus buy calculator
AI responses may include mistakes. For financial advice, consult a professional. Learn more The table below illustrates a typical financial comparison
: This varies significantly by state and local municipality. 🚗 Which Option Fits Your Lifestyle? Choose Leasing If: You prefer driving a new car every 2 to 3 years. You want the lowest possible monthly payment. You drive a predictable number of miles each year. You use the vehicle for business and want tax deductions. Choose Buying If: You plan to keep the vehicle for 5 years or longer. You drive more than 15,000 miles per year. For financial advice, consult a professional
You want to build equity and eventually eliminate monthly payments. You like to customize or modify your vehicles.