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Car lease or Purchase
Comparison of leasing a vehicle versus buying.

Auto Lease Vs. Buy Calculator
To choose between a vehicle lease or loan, you'll need to compare your total costs over the term of the arrangement. This calculator will give you a rough estimate of the costs involved, as well as a comparison between "lost interest" costs related to your initial expenses. It will even calculate your estimated monthly lease payment and/or your monthly loan payment if necessary.

Start with Line 1 and work your way through the entry fields and then click on "Compute" to arrive at cost figures.

Description (A) Lease: (B) Loan: Instruct/Explain
1. Purchase price:
2. Sales tax rate:
3. Fees:
4. Cash Down payment:
5. Net Trade-in allowance:
6. Rebates:
7. Term (in months):
8. Interest rate (APR):
9. Monthly payment:
10. Security deposit:
11. Estimated resale value:
12. Annual savings rate:
13. Year #/% Deprec. 1 2 3 4 5 6 7 8 9 10
Description (A) Lease: (B) Loan: Instruct/Explain
14. Monthly payment:
15. Total of payments:
16. Total interest expense:
17. Net upfront expenses:
18. Depreciation expense:
19. Forgone Interest earnings:
20. Total cost:
21. Average cost per year:

When getting a car or truck, one of the largest things that go through our mind is what do we really want and what can we really financially afford?

Often times a consideration is given to leasing a vehicle instead of purchasing one.

Many people usually have a strong opinion in regard to leasing. Some oponions are that you only rent what depreciates and buy what appreciates. Others think their family always bought vehicles and never leased. We want to give some financial help in making a clear, informed decision.

I personally have both bought and leased a number of vehicles over the years. My first auto lease was a 1983 Escort. The base lease payment was $99 per month. For a college student to run a reliable, brand new car that got fantastic mileage was awesome.

Since then, I’ve leased both new and used trucks and cars over the years. I’ve also purchased new and used vehicles. So, how do you decide which is the best financial decision for you?

Things to consider include:
How many miles do you drive a year?
What is the projected resale value of your used vehicle?
What are the current interest rates?
Are there special rebates?

Our auto lease verses buy calculator will help give you some direction. You will eventually want to speak with a dealer. Sometimes vehicle leases have quirks to them. A Ford F-150 I leased actually had a lower monthly payment by adding an off-road package. That’s right, by putting options on a vehicle, it lowered the payment.

Remember, on a vehicle lease, the auto company is projecting what it can sell the vehicle for now verses what it will be worth at the end of your lease. The off road package on my truck gave a higher trade in value than what it actually cost to put on up front, thus lowering the payments.

Finally, if you are thinking about getting a new vehicle verses a used one, we have a financial calculator for that also.

Make sure to determine the amount of miles driven. There can be penalties on leases if you exceed the allowable amount in your contract.