How we compare
Leasing: the amount due at signing plus all monthly payments. Buying: the down payment plus the loan payments over the same period, plus the loan balance left, minus what the car is worth then.
Example
A $399 lease for 36 months with $3,000 due at signing costs $17,364. Buying the $35,000 car with $5,000 down at 6.9% for 60 months, and with the car worth $21,000 after 3 years, costs about $18,584 net. Leasing is about $1,220 cheaper over 3 years, but buying leaves you with a car and no payments after year 5.
Frequently asked questions
What about mileage limits?
Leases usually allow 10,000 to 15,000 miles a year and charge 15 to 30 cents for each extra mile.
See also
Results are estimates for information only and are not financial, legal or medical advice. Rates, taxes and fees vary — confirm with a professional or your lender.