Comparing the true cost
Buying and leasing are compared over the same term. Buying's net cost is your down payment plus all loan payments, minus what the car is worth when you're done — because you still own that value. Leasing's cost is the money due at signing plus every monthly payment, with nothing to show at the end.
Why resale value is the key input
The single biggest factor in favour of buying is the car's worth at the end of the term. A car that holds its value makes buying much cheaper on paper; one that depreciates hard narrows the gap. Because resale is an estimate, try a high and a low figure to see how sensitive the answer is.
Beyond the numbers
This compares cash cost only. Leasing often means lower monthly payments and a newer car more often, while buying builds ownership and has no mileage limits. Weigh those trade-offs alongside the total the calculator shows.
Frequently asked questions
How is buying's cost worked out?
Down payment plus total loan payments, minus the resale value you expect at the end of the term.
Does it include maintenance or insurance?
No — it compares purchase and lease cash costs. Add running costs separately if they differ between the options.
Is it better to lease or buy?
It depends on how long you keep the car and the total cost. Leasing usually has lower payments but you own nothing; buying costs more upfront but the car is yours.
What should I compare?
Not just the monthly payment — compare the total cost over the same period, including the down payment, fees and the car's value at the end.
When does leasing make sense?
If you like changing cars often or want to avoid long-term maintenance. Buying wins if you keep a car for many years.