:root {
–primary-blue: #004a99;
–success-green: #28a745;
–light-background: #f8f9fa;
–white: #ffffff;
–dark-gray: #333333;
–medium-gray: #6c757d;
}
body {
font-family: 'Segoe UI', Tahoma, Geneva, Verdana, sans-serif;
line-height: 1.6;
color: var(–dark-gray);
background-color: var(–light-background);
margin: 0;
padding: 20px;
display: flex;
flex-direction: column;
align-items: center;
}
.loan-calc-container {
background-color: var(–white);
padding: 30px;
border-radius: 8px;
box-shadow: 0 4px 15px rgba(0, 0, 0, 0.1);
max-width: 800px;
width: 100%;
margin-bottom: 30px;
}
h1 {
color: var(–primary-blue);
text-align: center;
margin-bottom: 20px;
}
h2 {
color: var(–primary-blue);
margin-top: 30px;
margin-bottom: 15px;
border-bottom: 2px solid var(–primary-blue);
padding-bottom: 5px;
}
.input-group {
margin-bottom: 20px;
display: flex;
flex-wrap: wrap;
align-items: center;
}
.input-group label {
flex: 0 0 200px; /* Fixed width for labels */
margin-right: 15px;
font-weight: 500;
color: var(–medium-gray);
text-align: right;
}
.input-group input[type="number"],
.input-group input[type="text"],
.input-group select {
flex: 1;
padding: 10px;
border: 1px solid #ccc;
border-radius: 4px;
font-size: 1rem;
min-width: 150px; /* Ensure input fields have a decent minimum width */
}
.input-group select {
background-color: var(–white); /* Ensure select dropdown background is white */
}
.button-group {
text-align: center;
margin-top: 30px;
}
.calculate-button {
background-color: var(–primary-blue);
color: var(–white);
border: none;
padding: 12px 25px;
border-radius: 5px;
font-size: 1.1rem;
cursor: pointer;
transition: background-color 0.3s ease;
}
.calculate-button:hover {
background-color: #003366; /* Darker blue on hover */
}
.result-container {
margin-top: 30px;
padding: 25px;
background-color: var(–success-green);
color: var(–white);
border-radius: 8px;
text-align: center;
box-shadow: 0 2px 10px rgba(0, 0, 0, 0.1);
}
.result-container h3 {
margin-top: 0;
font-size: 1.4rem;
color: var(–white);
}
.result-container p {
font-size: 1.2rem;
margin-bottom: 5px;
}
.result-container .cost-difference {
font-size: 1.6rem;
font-weight: bold;
color: var(–white);
margin-top: 15px;
}
.article-section {
margin-top: 40px;
background-color: var(–white);
padding: 30px;
border-radius: 8px;
box-shadow: 0 4px 15px rgba(0, 0, 0, 0.1);
max-width: 800px;
width: 100%;
}
.article-section h2 {
color: var(–primary-blue);
border-bottom: 2px solid var(–primary-blue);
padding-bottom: 8px;
margin-bottom: 20px;
}
.article-section p, .article-section ul, .article-section li {
margin-bottom: 15px;
color: var(–dark-gray);
}
.article-section li {
list-style-type: disc;
margin-left: 20px;
}
.article-section strong {
color: var(–primary-blue);
}
/* Responsive Adjustments */
@media (max-width: 600px) {
.input-group {
flex-direction: column;
align-items: stretch;
}
.input-group label {
text-align: left;
margin-right: 0;
margin-bottom: 5px;
flex: none;
width: auto;
}
.input-group input[type="number"],
.input-group input[type="text"],
.input-group select {
width: 100%; /* Full width on small screens */
box-sizing: border-box; /* Include padding and border in the element's total width and height */
}
.loan-calc-container {
padding: 20px;
}
.result-container {
padding: 20px;
}
.article-section {
padding: 20px;
}
}
Understanding Car Buying vs. Leasing
Deciding whether to buy or lease a car is a significant financial decision. Each option has its own set of advantages and disadvantages, and the best choice often depends on your individual financial situation, driving habits, and preferences.
Buying a Car
When you buy a car, you own it outright after paying off any loans. This means you can drive it for as long as you like, customize it, and sell it when you're ready. However, buying typically involves a larger upfront cost and monthly loan payments that may be higher than lease payments.
Key aspects of buying:
- Ownership: You build equity and eventually own the vehicle.
- Mileage: No restrictions on how much you can drive.
- Customization: You can modify the car as you please.
- Resale Value: You benefit from the car's residual value when you sell it.
- Long-Term Cost: Potentially lower cost over the very long term if you keep the car for many years.
- Maintenance: You are responsible for all maintenance and repairs, which can increase as the car ages.
Leasing a Car
Leasing a car is essentially a long-term rental agreement. You pay to use the car for a fixed period (the lease term), typically with lower monthly payments than buying. At the end of the lease, you return the car, buy it out, or lease a new one.
Key aspects of leasing:
- Lower Monthly Payments: Generally more affordable monthly payments compared to buying the same car.
- New Car More Often: Allows you to drive a new car every few years with the latest technology and features.
- Warranty Coverage: Leased vehicles are often under warranty for the entire lease term, reducing unexpected repair costs.
- Mileage Limits: Leases come with strict annual mileage limits. Exceeding these limits results in costly per-mile charges.
- Wear and Tear Charges: You may be charged for excessive wear and tear when you return the vehicle.
- No Ownership: You do not own the car and do not build equity.
How the Calculator Works
This calculator helps you estimate the total cost of both options over a comparable period. For buying, it calculates the total cost of the loan, maintenance, insurance, and then subtracts the estimated resale value. For leasing, it sums up the monthly payments, down payment, fees, and any end-of-lease charges, then subtracts the estimated resale value IF you choose to buy out the lease.
Buying Cost Calculation:
1. Loan Principal: Car Price – Down Payment (Buying)
2. Total Loan Payments: Calculated using the loan principal, interest rate, and loan term. The formula for monthly payment (M) is:
M = P [ i(1 + i)^n ] / [ (1 + i)^n – 1]
Where:
P = Principal loan amount
i = Monthly interest rate (Annual rate / 12)
n = Total number of payments (Loan term in months)
3. Total Interest Paid: (Total Loan Payments * Loan Term) – Loan Principal
4. Total Maintenance Cost: Estimated Annual Maintenance * Number of Years (based on loan term for comparison)
5. Total Insurance Cost: Estimated Annual Insurance * Number of Years (based on loan term for comparison)
6. Total Cost of Buying: (Loan Principal + Total Interest Paid) + Total Maintenance Cost + Total Insurance Cost – Estimated Resale Value After Buy Period
Leasing Cost Calculation:
1. Depreciation: Car Price – (Car Price * Residual Value Percentage / 100)
2. Depreciation Cost Over Lease Term: (Depreciation * (Lease Term / 12)) / (Loan Term for Comparison / 12)
*Note: This step is a simplification. A more accurate lease calculation involves calculating the monthly payment based on depreciation, money factor (interest rate approximation), and residual value. For simplicity here, we are using the provided monthly lease payment, which should reflect these factors.*
3. Total Lease Payments: Monthly Lease Payment * Lease Term
4. Total Out-of-Pocket Lease Costs: Lease Down Payment + Total Lease Payments + End-of-Lease Fees
5. Cost if Buying Out Lease: Total Out-of-Pocket Lease Costs + Expected Buyout Price – Estimated Resale Value After Lease Period (if buying out and selling)
6. Total Cost of Leasing (if not buying out): Total Out-of-Pocket Lease Costs + Estimated Resale Value After Lease Period (representing the value of returning the car)
7. Final Lease Cost for Comparison: We'll present the cost based on the total out-of-pocket lease payments plus the residual value (what the car is worth at lease end) vs. the total cost of buying. If a buyout price is provided, we calculate the cost of buying it out and then selling it.
Making Your Decision
Consider your priorities. If you want the lowest possible monthly payments and to drive a new car every few years, leasing might be appealing. If you plan to keep your car for a long time, want to avoid mileage restrictions, and prefer to own an asset, buying is likely the better option. Use this calculator as a tool to get a clearer financial picture, but also factor in non-financial aspects like your driving habits and desire for flexibility.
Disclaimer: This calculator provides an estimate based on the inputs provided. Actual costs may vary. It's recommended to consult with financial professionals and review all contract details before making a final decision.
function calculateCarCosts() {
// Get input values
var carPrice = parseFloat(document.getElementById("carPrice").value);
var downPaymentBuy = parseFloat(document.getElementById("downPaymentBuy").value);
var loanTermBuyMonths = parseInt(document.getElementById("loanTermBuyMonths").value);
var interestRateBuy = parseFloat(document.getElementById("interestRateBuy").value);
var annualMileage = parseInt(document.getElementById("annualMileage").value);
var leaseTermMonths = parseInt(document.getElementById("leaseTermMonths").value);
var monthlyLeasePayment = parseFloat(document.getElementById("monthlyLeasePayment").value);
var leaseDownPayment = parseFloat(document.getElementById("leaseDownPayment").value);
var residualValuePercentage = parseFloat(document.getElementById("residualValuePercentage").value);
var buyoutOptionFee = parseFloat(document.getElementById("buyoutOptionFee").value);
var endOfLeaseFees = parseFloat(document.getElementById("endOfLeaseFees").value);
var expectedBuyoutPrice = parseFloat(document.getElementById("expectedBuyoutPrice").value);
var sellingPriceBuy = parseFloat(document.getElementById("sellingPriceBuy").value);
var sellingPriceLease = parseFloat(document.getElementById("sellingPriceLease").value);
var maintenanceBuy = parseFloat(document.getElementById("maintenanceBuy").value);
var maintenanceLease = parseFloat(document.getElementById("maintenanceLease").value);
var insuranceBuy = parseFloat(document.getElementById("insuranceBuy").value);
var insuranceLease = parseFloat(document.getElementById("insuranceLease").value);
var totalBuyCost = 0;
var totalLeaseCost = 0;
var costDifference = 0;
// — Calculate Buying Costs —
var loanPrincipalBuy = carPrice – downPaymentBuy;
var monthlyInterestRateBuy = (interestRateBuy / 100) / 12;
var totalLoanPayments = 0;
var totalInterestPaid = 0;
if (loanTermBuyMonths > 0 && monthlyInterestRateBuy > 0) {
// Monthly Payment Formula: M = P [ i(1 + i)^n ] / [ (1 + i)^n – 1]
var n = loanTermBuyMonths;
var i = monthlyInterestRateBuy;
var P = loanPrincipalBuy;
var numerator = i * Math.pow((1 + i), n);
var denominator = Math.pow((1 + i), n) – 1;
var monthlyPaymentBuy = P * (numerator / denominator);
totalLoanPayments = monthlyPaymentBuy * loanTermBuyMonths;
totalInterestPaid = totalLoanPayments – loanPrincipalBuy;
} else if (loanTermBuyMonths > 0) { // 0% interest
totalLoanPayments = loanPrincipalBuy;
totalInterestPaid = 0;
} else {
totalLoanPayments = loanPrincipalBuy; // Handle case where term is 0 or invalid
totalInterestPaid = 0;
}
var numberOfYearsForComparison = Math.ceil(loanTermBuyMonths / 12); // Use loan term for comparison duration
var totalMaintenanceBuy = maintenanceBuy * numberOfYearsForComparison;
var totalInsuranceBuy = insuranceBuy * numberOfYearsForComparison;
// Ensure sellingPriceBuy is not more than the initial price
var finalSellingPriceBuy = Math.min(sellingPriceBuy, carPrice);
totalBuyCost = downPaymentBuy + totalLoanPayments + totalMaintenanceBuy + totalInsuranceBuy – finalSellingPriceBuy;
// — Calculate Leasing Costs —
var totalMonthlyLeasePayments = monthlyLeasePayment * leaseTermMonths;
var totalLeaseOutlay = leaseDownPayment + totalMonthlyLeasePayments + endOfLeaseFees;
// Option 1: Return the car at the end of the lease
var leaseCostReturn = totalLeaseOutlay;
// Option 2: Buy out the lease and then sell it
var leaseCostBuyoutAndSell = 0;
if (!isNaN(expectedBuyoutPrice) && !isNaN(sellingPriceLease)) {
// Ensure sellingPriceLease is not more than the buyout price
var finalSellingPriceLease = Math.min(sellingPriceLease, expectedBuyoutPrice);
leaseCostBuyoutAndSell = totalLeaseOutlay + expectedBuyoutPrice – finalSellingPriceLease;
} else {
// If buyout price or selling price is not provided, we can't calculate this path accurately.
// For simplicity, we'll use the cost of returning the car as the baseline lease cost if buyout isn't fully specified.
leaseCostBuyoutAndSell = leaseCostReturn; // Fallback
}
// For comparison, we'll use the most relevant lease cost.
// If a buyout price is given, comparing the total cost of buying out and selling vs. buying outright is most meaningful.
// If no buyout price, then comparing returning the car vs. buying outright is best.
var finalTotalLeaseCost = 0;
if (!isNaN(expectedBuyoutPrice)) {
finalTotalLeaseCost = leaseCostBuyoutAndSell;
} else {
finalTotalLeaseCost = leaseCostReturn;
}
// — Display Results —
// Format as currency
function formatCurrency(amount) {
return amount.toLocaleString('en-US', { style: 'currency', currency: 'USD' });
}
document.getElementById("totalBuyCost").textContent = formatCurrency(totalBuyCost);
document.getElementById("totalLeaseCost").textContent = formatCurrency(finalTotalLeaseCost);
costDifference = totalBuyCost – finalTotalLeaseCost;
var differenceText = "";
if (costDifference > 0) {
differenceText = formatCurrency(costDifference) + " cheaper to Lease";
} else if (costDifference < 0) {
differenceText = formatCurrency(Math.abs(costDifference)) + " cheaper to Buy";
} else {
differenceText = "Costs are equal";
}
document.getElementById("costDifference").textContent = differenceText;
document.getElementById("result-container").style.display = "block";
}