Buy vs Lease Car Calculator

It depends on your situation. Buying is typically better if you drive high miles, keep cars 5+ years, or want to build equity. Leasing can be better if you want lower monthly payments, prefer new cars every 2-3 years, or drive under 12,000 miles/year.

Hidden lease costs include: excess mileage fees ($0.15-0.30/mile over limit), wear and tear charges at turn-in, disposition fees ($300-500), early termination penalties, and gap insurance. Also, you pay for features/repairs that benefit the next owner.

Lease payments only cover the car's depreciation during the lease term (typically 40-50% of value), not the full price. Buy payments must cover the entire purchase price. However, buying builds equity while leasing builds nothing.

You'll pay excess mileage fees when you return the car, typically $0.15-0.30 per mile over the limit. For example, 5,000 excess miles at $0.20/mile = $1,000. If you know you'll drive more, negotiate higher mileage upfront (cheaper than excess fees).

Yes! Negotiate the "capitalized cost" (vehicle price), which directly affects your payment. Also negotiate the money factor (interest rate) and any fees. The residual value is usually set by the manufacturer and non-negotiable.

Buying typically breaks even with leasing around year 4-5, when the car is paid off but still has significant value. Before that, leasing often has lower total costs. After that, buying wins because you own a paid-off vehicle.

Generally no. Standard leases allow 10,000-15,000 miles/year. High-mileage drivers face steep excess fees or must negotiate expensive high-mileage leases. If you drive 15,000+ miles/year, buying is usually more economical.

Leased cars are typically under warranty for the entire lease term, so major repairs are covered. This reduces maintenance uncertainty. However, you're still responsible for routine maintenance (oil, tires, brakes) and must return the car in good condition.