The 30-Second Verdict
Drive under ~12,000 miles a year, want a new car every 3 years, and never want a repair bill? Lease. Drive a lot, keep cars 6+ years, or want to kill the payment someday? Buy. There’s no universally cheaper option — only the cheaper option for how you drive.
Why It Depends on You
Leasing means paying for the car’s depreciation during its newest, priciest years — and you never stop paying. Buying costs more up front, but every year after the loan ends is a $0 car payment. Keep a bought car 8 years and the math crushes leasing. Swap every 3 years and leasing wins on simplicity.
The Mileage Test
Over 15,000 miles a year? Don’t lease — overage penalties (typically $0.15–$0.25 per mile) will destroy you. Mostly commuting 10,000 miles? Lease away.
The Bottom Line
New car every 3 years + low miles → lease. Long hauls + payment freedom → buy. Match the choice to your driving, not your neighbor’s.
The Lease vs Buy Calculator
Lease total assumes back-to-back leases for the full period. Buy total is down payment plus loan payments only — it excludes maintenance and repairs.
Educational estimate only. Based on YOUR lease payment, lease term, annual miles, purchase price, down payment, APR, and loan term you enter. Lease total assumes back-to-back leases for the full period. Buy total is down payment plus loan payments only — it excludes maintenance, repairs, insurance, taxes, fees, and mileage penalties. Not financial advice.
Disclaimer: Educational only, not financial advice. Talk to a qualified financial advisor about your situation.
Frequently Asked Questions
What is the ownership rule?
Drive under ~12,000 miles a year, want a new car every 3 years, and never want a repair bill? Lease. Drive a lot, keep cars 6+ years, or want to kill the payment someday? Buy.
When does leasing win?
If you drive under ~12,000 miles a year, want a new car every 3 years, and never want a repair bill — leasing wins on simplicity.
When does buying win?
If you drive a lot, keep cars 6+ years, or want to kill the payment someday — every year after the loan ends is a $0 car payment.
When should I ignore this rule and talk to a professional?
The calculator excludes maintenance, repairs, insurance, taxes, fees, and mileage penalties — talk to a qualified financial advisor about your situation.
Not quite your situation?
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