Personal Finance Information


Calculator: Should I Purchase or Lease?



Should I purchase or lease?

The question of whether to buy or lease a car can hinge more on how you'll use the vehicle, and for how long, than on what the monthly cost will be.

That's not to say the money doesn't matter. With the average price of a new car approaching $25,000, financing—through an auto loan or a lease—is likely. Lately, consumers acquire about a third of all new cars through leases.

You should know that, to make up for recent lease losses, monthly payments for new leases could be going up $80 to $100, reports Bankrate.com, a financial trade monitor based in North Palm Beach, Fla.

Talk to the people at your credit union about leasing and loan options. You may find that the credit union has a loan with all the features you're looking for in a lease. And use this calculator to help you compare your lease vs. borrowing options. (Remember to factor in the cost to purchase the vehicle at the end of the lease. That typically brings your total lease-to-own cost higher than the purchase-to-own cost.)

Use only numerals and decimal points in your input.
PURCHASE

Negotiated purchase price

 $

State sales tax rate

 %

Vehicle age in years (0 = new)

Cash rebate

 $

Down payment

 $

Other upfront costs

 $

Loan term (months)

Interest rate

Years you will own vehicle
LEASE

Lease term (months)

Monthly payment

 $

Security deposit

 $

Cash paid

 $

Cash rebate

 $
FUTURE DEPRECIATION

Average
Low
High


This calculator is solely for informational purposes and provides reasonably accurate results; the calculations are not intended to be relied upon as actual borrowing/savings results computations.

Published July 2, 2001

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