Buy vs. Lease

Disclaimer: These calculations are only estimates, used to understand differences between buying and leasing. Please consult your dealer for actual pricing.

Car

All rebates, trade in, etc. applied

Buy/Lease

Maintenance

DescriptionMonthAmtRecurring 
Oil Change12$50.00Yes
Tires48$650.00Yes
Brakes60$200.00Yes
Timing Belt100$1,500.00Yes

Estimated Results

 BuyLease
Miles108,000
Amount$0.00$0.00
Monthly Payment$0.00$0.00
Plan Duration9 years
Plan Net$0.00$0.00

Chart Values For:

TermDescription
Buy NetBuy Net is calculated by adding the finance down payment, finance payments, repairs and the car value.
Buy SpentBuy Spent is a running total calculated by adding the finance down payment and monthly finance payments.
Lease NetLease Net is calculated by adding lease down payments and lease payments. Lease Net does not include any maintenance or repairs, it is assumed a three year lease will come with a bumper to bumper, 0 scheduled maintenance warranty.
Lease SpentLease Spent is a running total calculated by adding the lease down payments and monthly lease payments. Each lease start, the lease down payment is added to the running total.
Money FactorWhen leasing a car, the Money Factor is the cost to "rent" the car. This will vary based on dealer pricing.
RecurringWhen adding a maintenance repair, it can be set as recurring. For example: An oil change occurs at month 12. Check Recurring to have it added every 12 months.
Residual Value

The value of a car goes down over time. The residual value is the estimated wholesale price at the end of three years. The calculator above works with three year leases. So, the RV% should be about 57%. This will vary based on dealer pricing.

Using Above Values
With an MSRP of $30,000.00 and a Residual Value 62%:
The value of the car after 3 years is $18,600.00
The value of the car after 6 years is $11,532.00

For the chart above, the last car value is used. This causes a straight line for the depreciation.