Vehicle Lease vs. Buy Calculator
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Your Vehicle Decision
Enter your details above and click "Calculate Comparison" to see the results.
Understanding Lease vs. Buy Decisions
Deciding whether to lease or buy a new vehicle is a significant financial decision with long-term implications. Each option has its own set of advantages and disadvantages, and the "better" choice often depends on your individual driving habits, financial situation, and preferences. This calculator helps you compare the estimated total costs of leasing versus buying a vehicle over a specific period.
How the Calculator Works:
The calculator estimates the total cost of ownership for both scenarios over the chosen period, considering various factors:
- Buying Costs: This includes the total loan payments (principal and interest), down payment, maintenance, insurance, and subtracts the estimated resale value of the car at the end of the term. The total cost represents the net expense of owning the vehicle outright.
- Leasing Costs: This comprises the total monthly lease payments, down payment (capitalized cost reduction), estimated mileage overage charges, maintenance (if not included), insurance, and the option to buy the vehicle at lease end.
Key Inputs Explained:
- Vehicle Price: The Manufacturer's Suggested Retail Price (MSRP) or negotiated price of the vehicle.
- Down Payment (Buy): The amount paid upfront when purchasing.
- Loan Amount (Buy): The amount financed for the purchase.
- Loan Term (Years – Buy): The duration of the loan in years.
- Annual Interest Rate (Buy %): The yearly interest rate on the loan.
- Annual Maintenance/Repairs: Estimated yearly costs for upkeep and repairs. Higher for older or more complex vehicles.
- Annual Insurance: Estimated yearly cost for car insurance. This can vary significantly by vehicle, driver, and location.
- Estimated Resale Value (After Buy Term): The expected market value of the car after you've paid off the loan.
- Lease Term (Months): The duration of the lease agreement.
- Monthly Lease Payment: The fixed amount paid each month for the lease.
- Down Payment / Capitalized Cost Reduction: An upfront payment made to reduce the capitalized cost (the price of the vehicle for lease purposes).
- Annual Mileage Allowance: The maximum number of miles you can drive per year without penalty.
- Overage Charge Per Mile: The cost incurred for each mile driven beyond the allowance.
- Maintenance/Repairs Included in Lease?: Indicates if routine maintenance is covered by the lease agreement.
- Estimated Annual Maintenance/Repairs (If Not Included): Your estimated yearly costs if maintenance isn't covered.
- Annual Insurance (Lease): Similar to buying, this is your estimated insurance cost.
- Estimated Lease-End Buyout Price: The price at which you can purchase the vehicle at the end of the lease term.
When to Lease:
- You prefer driving a new car every few years.
- You drive a predictable number of miles per year and stay within the allowance.
- You want lower monthly payments compared to buying.
- You want to minimize depreciation concerns and the hassle of selling a used car.
- You take advantage of included maintenance.
When to Buy:
- You plan to keep your vehicle for many years beyond the lease term.
- You drive more miles than the lease allowance typically permits.
- You prefer to customize your vehicle or drive it without mileage restrictions.
- You want to build equity and own an asset at the end of the payment period.
- You plan to drive the vehicle until it's no longer functional.
Use this calculator as a guide. Always consider current market conditions, specific dealer offers, and your personal financial goals when making your final decision.
Estimated Total Costs
'; htmlOutput += 'Over your chosen ' + loanTermBuy + '-year buying period / ' + leaseTermMonths + '-month lease term:'; htmlOutput += '';
htmlOutput += 'Buying Scenario Total Net Cost:';
htmlOutput += '$' + totalCostOfBuying.toFixed(2).replace(/\d(?=(\d{3})+\.)/g, '$&,') + ";
htmlOutput += '
';
htmlOutput += '';
htmlOutput += 'Leasing Scenario Total Cost (without buyout):';
htmlOutput += '$' + totalLeaseCostIfNotBought.toFixed(2).replace(/\d(?=(\d{3})+\.)/g, '$&,') + ";
htmlOutput += '
';
htmlOutput += '';
htmlOutput += 'Leasing Scenario Total Cost (with buyout):';
htmlOutput += '$' + totalCostIfBoughtOut.toFixed(2).replace(/\d(?=(\d{3})+\.)/g, '$&,') + ";
htmlOutput += '
';
var difference = totalCostOfBuying – totalLeaseCostIfNotBought;
var comparisonMessage = "";
var recommendationColor = "#000";
if (difference < 0) {
comparisonMessage = "Based on these estimates, buying appears to be more cost-effective than leasing (without buyout) by approximately $" + (-difference).toFixed(2).replace(/\d(?=(\d{3})+\.)/g, '$&,') + ".";
recommendationColor = "green";
} else if (difference > 0) {
comparisonMessage = "Based on these estimates, leasing (without buyout) appears to be more cost-effective than buying by approximately $" + difference.toFixed(2).replace(/\d(?=(\d{3})+\.)/g, '$&,') + ".";
recommendationColor = "blue";
} else {
comparisonMessage = "The estimated costs for buying and leasing (without buyout) are very similar.";
recommendationColor = "gray";
}
// Add a note about buyout cost comparison
var buyoutVsBuyCostDifference = totalCostOfBuying – totalCostIfBoughtOut;
var buyoutComparisonMessage = "";
if (totalCostIfBoughtOut < totalCostOfBuying) {
buyoutComparisonMessage = "If you choose to buy out the lease, the total cost might be lower than buying outright, saving you approximately $" + (-buyoutVsBuyCostDifference).toFixed(2).replace(/\d(?=(\d{3})+\.)/g, '$&,') + ".";
if (buyoutVsBuyCostDifference < 0) { // If buying out lease is cheaper than buying outright
recommendationColor = "darkgreen";
} else {
recommendationColor = "darkblue";
}
} else {
buyoutComparisonMessage = "If you choose to buy out the lease, the total cost might be higher than buying outright. Consider this difference carefully.";
}
htmlOutput += '' + comparisonMessage + '';
htmlOutput += '' + buyoutComparisonMessage + '';
htmlOutput += 'Note: Overage charges, taxes, fees, and potential financing differences not explicitly calculated may affect the final costs. The 'Buying Scenario Total Net Cost' assumes you sell the vehicle for the estimated resale value at the end of the loan term.';
resultDiv.innerHTML = htmlOutput;
}