woman standing near a vehicle holding a baby

You're in need of a new car, but does buying or leasing make the most financial sense? Many go into the purchase thinking that if they don’t have the finances, car leasing may be a better fit. Leasing may also be a good option for those who are looking to drive the latest car models, but don’t want to own their car. However, taking out an auto loan to buy a new or used car can help you save a lot of money in the long run compared to leasing a car. Another thing to consider is that if you buy a car, once you make your final loan payment, you will fully own your vehicle, while at the end of the lease, you will have to return your car.

Keep in mind that although monthly payments and interest rates will likely be higher when you purchase a new car, you have the ability to sell, donate or gift your vehicle in the future because you own it. Leasing, on the other hand, can mean lower monthly payments and interest rates. However, you won’t be investing your money on an owned vehicle.

Should you buy or lease a car?

To help you determine whether you should buy or lease your next car, we’ve created this simple auto lease calculator. This calculator will give you a side-by-side comparison of what the net costs of buying or leasing a car will be based on the information you enter. To get the most accurate estimate, you will need to know:
  • The loan term/lease term in months
  • Purchase price
  • Down payment
  • Interest rate
  • Sales tax rate
  • Annual depreciation

Get the net cost of buying vs. leasing by simply entering the fields below.

­­

The information included here is designed for informational purposes only. It is not legal, tax, financial or any other sort of advice, nor is it a substitute for such advice. The information may not apply to your specific situation. We have tried to make sure the information is accurate, but it could be outdated or even inaccurate in parts. It is the reader’s responsibility to comply with any applicable local, state or federal regulations. Nationwide Mutual Insurance Company, its affiliates and their employees make no warranties about the information nor guarantee of results, and they assume no liability in connection with the information provided.

Loading...