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LeaseCalc
Lease or buy? Compare total cost over the same period and see which saves more.
You pay for the depreciation during the lease term plus a finance charge. A $40,000 car with a 55% residual after 3 years has $18,000 of depreciation — roughly $500/month before the money factor. Lower residual = higher payment. The money factor × 2400 ≈ equivalent APR.
Lease if you want a new car every 2-3 years, drive under 12K miles/year, and want lower monthly payments. Buy if you keep cars 5+ years (the payment-free years after payoff are where buying wins), drive a lot, or want to modify the vehicle. Buying almost always wins on total cost if you hold the car long enough.
Recommendation
Leasing is cheaper
Difference: $5,237
What you entered
Total lease cost
$3,000 down + $450 × 36 mo= $19,200Buy: monthly payment
$37,000 loan at 6.5% for 60 mo= $724/moTotal buy payments
$3,000 + $724 × 60= $46,437Estimated vehicle value at lease end
$40,000 depreciated over 36 mo= $22,000Effective buy cost (payments − equity)
$46,437 − $22,000= $24,437Result
Recommendation: Leasing is cheaper
Over 36 months, leasing costs $19,200 with no equity. Buying costs $46,437 in payments but you retain ~$22,000 in vehicle value. Leasing is cheaper by $5,237.