Lease vs Buy Car Calculator
Updated on 22 Oct 2026 · Checked by Aotob
Over 36 months, buying costs $503 less.
Buying costs $19,097 once you sell the car for about $19,250; leasing costs $19,600.
Buying saves
$503
Buying costs more each month ($926 vs $450) but you own a car worth $19,250 at the end.
Show the working
Buy = 5,000 + 926 × 36 − 19,250 = 19,097
Lease = 3,000 + 450 × 36 + 400 = 19,600
If the car keeps more or less value
| Value at the end | Buying costs | Leasing costs |
|---|---|---|
| 35% | 26,097 | 19,600 |
| 45% | 22,597 | 19,600 |
| 55% | 19,097 | 19,600 |
| 65% | 15,597 | 19,600 |
Questions people ask
Is leasing or buying cheaper?
Over the long run buying is usually cheaper, because you keep the car after the loan. Leasing can win over short periods, especially on cars that lose value fast.
What is a residual value?
What the car is expected to be worth at the end. A high residual means a cheaper lease, and a car worth more if you buy.
What are the catches with leasing?
Mileage limits, charges for wear and damage, and fees to end early. In the UK, PCP is a loan with a balloon payment that works similarly.
Updated 22 Oct 2026Source: Standard maths; typical prices are averages, checked October 2026Checked by AotobExcludes insurance, which is often higher on leases.Report an issue