Compared
Lease vs Buy a Car: Which Is Cheaper for You?
Leasing rents the car's depreciation over a few years; buying pays for the whole car and leaves you with an asset. Lower monthly payments make leasing look cheaper, but the comparison only holds once you count resale value and how long you keep the car.
When Lease wins
- You replace your car every 2-3 years and want the lowest monthly payment.
- You want a warranty to cover the whole time you drive the car.
- You drive predictable, moderate mileage that stays under the lease cap.
- You value driving a newer car over building equity in one you own.
When Buy wins
- You keep cars well past the loan payoff, spreading the cost over many years.
- You drive high mileage that would trigger costly lease overage fees.
- You want an asset with resale value and no restrictions on modifications.
- You are comfortable with higher payments now for lower cost per year later.
The honest answer
The deciding numbers are how long you keep the car and its resale value at that point. Over 3 years a lease often wins on cash out of pocket; over 8 years buying almost always wins because you drive years with no payment at all. Compare the total cost of both across your real ownership period, not just the monthly payment.
Run the numbers
Frequently asked questions
Why is the lease payment lower if leasing can cost more?+
A lease only pays for the depreciation during your term plus fees, so the monthly figure is smaller. But at the end you own nothing and start again, while a bought car keeps delivering value after the loan ends. The full-term comparison is what matters.
What mileage makes buying the clear winner?+
Leases charge per mile over the cap (often 10-15k/year). If you regularly exceed it, the overage fees can erase the lease's payment advantage. The lease-vs-buy calculator lets you enter your real annual mileage.
Is this financial advice?+
No. This page and the linked calculators show the math of the numbers you enter and are not financial advice. Consult a qualified professional for your own situation.