Leasing almost always wins on monthly payment and almost always loses on total cost — but by how much depends on how long you keep cars, how many miles you drive and what the car is worth when you’re done. Enter a real lease quote and a real purchase quote below and we’ll show the honest 3, 5 and 7-year totals for both.
Lease vs Buy Calculator
Lease offer
Purchase offer (same car)
Why leasing looks cheaper than it is
A lease payment only covers the depreciation during the term plus interest (the “money factor”) — you never pay toward owning anything. Each time you re-lease, you pay another round of fees, another down payment and another first-year depreciation hit, which is the most expensive part of any car’s life. Buying front-loads the pain into years one and two, then gets cheaper every year you keep the car. That’s why the break-even point in most comparisons lands between year four and year five.
When leasing actually makes sense
- You genuinely want a new car every 2–3 years and would trade in anyway.
- The manufacturer is subsidizing the lease (an inflated residual or near-zero money factor) — common on EVs and slow-selling models.
- You drive under the mileage cap and keep cars clean (excess wear fees are brutal).
- You use the car for business and can deduct the payments.
For a plain-English walkthrough of residuals, money factors and the questions to ask the dealer, read Lease vs Buy: Which Actually Costs Less?. Not sure how much car fits your budget either way? Start with the affordability calculator.