Car Loan vs Lease Comparator
Compare the total cost of buying with a loan vs leasing
How the Loan vs. Lease Comparison Works
The loan side amortizes the financed amount using the APR and term you enter. Net ownership cost equals the down payment plus all loan payments minus the vehicle’s expected value at the end of the term.
The lease side treats “lease down” as a capitalized-cost reduction. Monthly payment equals depreciation charge plus rent charge. Total lease outlay equals the cap-cost reduction plus monthly payments.
Important exclusions
The result excludes sales tax, registration, acquisition and disposition fees, security deposits, first-payment timing, maintenance, insurance, wear charges and mileage overage. Annual mileage is shown as planning context; it does not calculate an overage because mileage allowances and per-mile charges vary by contract.
- Enter zero for lease down if you want to avoid risking a large cap-cost reduction.
- Ask the dealer for the actual money factor and residual, not just a monthly payment.
- Use a conservative end-of-term resale value on the loan side.
- Compare equal terms and the same vehicle price.
Continue with the Car Buying & Dealer Guide Center, the guide to securing a car loan, the breakdown of hidden dealer fees, and the car-price negotiation guide.
