Leasing usually means a lower monthly payment; buying means you own something at the end. This calculator compares the two over the same time horizon — the lease term — and counts the equity you’d have in a purchased vehicle, so you’re comparing real costs, not just payments.
When leasing tends to win
Leasing favors drivers who want a new vehicle every two or three years, drive within the mileage cap (usually 16,000–20,000 km or 10,000–12,000 miles per year), and value a predictable payment over building equity. Business users may also be able to deduct lease payments — ask your accountant.
When buying tends to win
Buying wins for high-mileage drivers, for anyone who keeps vehicles longer than the loan term, and in most cases where you can afford the higher payment — because after the loan is paid off, you drive payment-free while a leaser starts a new contract. The longer you keep the car past payoff, the further ahead you come out.
Watch the lease fine print
Excess-mileage charges, wear-and-tear fees, and the “due at signing” amount can erase a lease’s apparent advantage. Get the total of all payments plus fees in writing and use that number in the comparison above.