Interest Rate Calculator Mortgage Uk

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Car Lease vs. Buy Calculator

Vehicle Details

Financing & Lease

Buying Total Net Cost

Leasing Total Cost

Based on equivalent timeframe

function calculateLeaseVsBuy() { var price = parseFloat(document.getElementById('vehiclePrice').value); var down = parseFloat(document.getElementById('downPayment').value); var resale = parseFloat(document.getElementById('resaleValue').value); var apr = parseFloat(document.getElementById('loanAPR').value) / 100 / 12; var term = parseFloat(document.getElementById('loanTerm').value); var lPayment = parseFloat(document.getElementById('leasePayment').value); if (isNaN(price) || isNaN(down) || isNaN(term) || isNaN(lPayment)) { alert("Please fill in all fields with valid numbers."); return; } var loanAmount = price – down; var monthlyLoan; if (apr === 0) { monthlyLoan = loanAmount / term; } else { monthlyLoan = (loanAmount * apr * Math.pow(1 + apr, term)) / (Math.pow(1 + apr, term) – 1); } var totalLoanPaid = (monthlyLoan * term) + down; var netBuyCost = totalLoanPaid – resale; var totalLeaseCost = (lPayment * term) + down; document.getElementById('buyResult').innerHTML = "$" + netBuyCost.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2}); document.getElementById('monthlyLoanResult').innerHTML = "Monthly Loan Payment: $" + monthlyLoan.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2}); document.getElementById('leaseResult').innerHTML = "$" + totalLeaseCost.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2}); var verdictDiv = document.getElementById('verdict'); if (netBuyCost < totalLeaseCost) { var savings = totalLeaseCost – netBuyCost; verdictDiv.innerHTML = "Buying is better! You save approx. $" + savings.toLocaleString(undefined, {maximumFractionDigits: 0}) + " over " + term + " months."; verdictDiv.style.backgroundColor = "#c6f6d5"; verdictDiv.style.color = "#22543d"; } else { var savings = netBuyCost – totalLeaseCost; verdictDiv.innerHTML = "Leasing is better! You save approx. $" + savings.toLocaleString(undefined, {maximumFractionDigits: 0}) + " over " + term + " months."; verdictDiv.style.backgroundColor = "#bee3f8"; verdictDiv.style.color = "#2a4365"; } document.getElementById('resultsArea').style.display = 'block'; }

Understanding the Real Cost: Car Lease vs. Buy

When it's time for a new set of wheels, the "Lease vs. Buy" debate is often the first hurdle. While monthly payments often lead people toward leasing, the long-term financial implications are more complex. This calculator helps you compare the Net Cost of Ownership.

How Buying Works

When you buy a car with a loan, your monthly payments go toward building equity. Once the loan term is finished (typically 60 to 72 months), you own the asset outright. The "Net Cost" of buying is calculated by taking the total of all your payments (including interest and down payment) and subtracting the estimated resale value of the car when you are done with it.

How Leasing Works

Leasing is essentially a long-term rental. You are paying for the vehicle's depreciation during the time you drive it, plus interest (known as the money factor) and fees. At the end of the term, you return the car. While the monthly cash flow is usually better, you are left with zero equity at the end of the term.

Key Factors to Consider

  • Mileage: Leases come with strict mileage limits (usually 10,000–15,000 miles per year). If you drive more, buying is almost always better.
  • Maintenance: Newer leased cars are usually under warranty, potentially lowering maintenance costs.
  • Customization: If you like to modify your vehicle, you must buy it. Leased vehicles must be returned in original condition.
  • Depreciation: Some cars hold their value better than others. A high resale value makes buying much more attractive.

Example Comparison

Imagine a $35,000 SUV.
Buying: With $5,000 down and a 5.5% interest rate over 60 months, your monthly payment is roughly $573. Total paid is $39,380. If you sell the car for $15,000 after 5 years, your Net Cost is $24,380.
Leasing: With $5,000 down and a $450 monthly payment, your Total Cost is $32,000.
In this scenario, buying saves you over $7,600 in the long run, even though the monthly check was $123 higher.

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