Lease vs buy, without the dealer spin

Leasing looks cheaper every month and more expensive every decade. The monthly payment is the worst possible way to compare the two, because it hides what you actually walk away with. A lease ends with nothing; a loan ends with a car worth real money. To compare them you have to put both on the same five-year footing.

Put both on a five-year basis

Add up everything you pay over five years in each scenario, then subtract what you own at the end. For a lease that’s the drive-off plus every payment. For a purchase it’s the down payment, all the loan payments and interest — minus the car’s resale value. Our lease vs buy calculator does exactly this and shows the gap.

Don’t forget the resale value

A car that holds 50% of its value at five years is effectively half-price to own. This single number swings the comparison more than the interest rate does — run a few resale scenarios before you decide. Use the depreciation calculator to estimate where your model lands.

What the dealer won’t lead with

Leases cap your mileage (often 10,000–12,000 a year) and charge for wear and overages at the end. If you drive a lot, those fees erode the lower monthly payment fast. And a low lease payment often hides a large amount due at signing — always compare the total of payments plus drive-off, not the monthly number alone.