Comparing like with like

Lease vs finance comparisons usually cheat by comparing a lease payment against a loan payment. Those buy different things: the loan payment builds equity in a car you will still own, the lease payment buys the car's depreciation plus the lessor's margin. This calculator compares total net cost over the same window: for financing, the down payment and every loan payment, plus paying off any remaining balance at the end, minus what the car sells for. For leasing, everything due at signing, every monthly payment, and the acquisition and disposition fees.

Reading the defaults

On a $45,000 vehicle held three years, financing at 7% costs about $30,500 net after selling the car at $20,250, while the lease runs about $23,800. Leasing wins the three-year window here, which is typical: leases are priced to look good exactly over their own term. Stretch the window to six or eight years, where the financed car is paid off and still running, and financing usually pulls far ahead. The honest comparison depends on how long you really keep cars.

What is deliberately left out

Mileage overage charges, wear-and-tear billbacks, lease-end buyout options, gap insurance, and the value of your time at the dealer. Every one of these tilts the table toward financing in practice. If the lease only wins by a small margin on this page, treat that as a tie at best.

Educational estimates, not purchasing advice. Taxes on leases vary by province and state and can change the comparison.