Car Lease Calculator Lease or Buy Decision
Compare leasing vs buying a car with detailed cost analysis
Make an informed decision by comparing monthly payments, total costs, equity, and long-term financial implications of leasing vs buying a car.
Car Details
Buying Option
Leasing Option
Understanding Lease vs Buy
Advantages of Buying
- • Ownership: You own the car and build equity
- • No Mileage Limits: Drive as much as you want
- • Customization: Modify the car as you like
- • Long-term Savings: Lower cost if you keep the car long
- • Trade-in Value: Can sell or trade-in anytime
Advantages of Leasing
- • Lower Monthly Payments: Typically 30-60% lower
- • Latest Models: Get a new car every few years
- • Less Maintenance: Covered by warranty
- • Lower Down Payment: Minimal upfront cost
- • Tax Benefits: Potential business tax deductions
Why Use Our Car Lease vs Buy Calculator?
Comprehensive Cost Analysis
Compare all costs including monthly payments, insurance, maintenance, depreciation, and opportunity costs to make an informed decision.
Visual Comparison
See side-by-side charts and graphs showing how costs evolve over time, making it easy to understand the financial impact.
Smart Recommendation
Get a clear recommendation based on your inputs and see exactly how much you'll save with the better option.
How to Use the Car Lease vs Buy Calculator
Enter Car Details
Start by entering the car price, expected annual mileage, maintenance costs, insurance, and depreciation rate.
Configure Buying Option
Enter your down payment percentage, loan interest rate, and loan tenure to calculate the total cost of buying.
Set Leasing Parameters
Input the monthly lease payment, lease term, down payment, and expected residual value to calculate leasing costs.
Compare and Decide
Review the detailed comparison including total costs, monthly payments, equity, and get a smart recommendation based on your situation.
Frequently Asked Questions
Should I lease or buy a car?
The decision depends on your driving habits, budget, and how long you plan to keep the car. Leasing offers lower monthly payments and the ability to drive a new car every few years, while buying builds equity and has no mileage restrictions.
What are the main advantages of leasing?
Leasing typically offers lower monthly payments (30-60% less than buying), minimal upfront costs, warranty coverage for repairs, ability to drive newer models frequently, and potential tax benefits for business use.
What are the main advantages of buying?
Buying means you own the vehicle outright, build equity over time, have no mileage restrictions, can customize the car, and benefit from trade-in or resale value. Long-term, buying is usually cheaper if you keep the car for many years.
What is residual value in car leasing?
Residual value is the estimated value of the car at the end of the lease term. It's typically expressed as a percentage of the original price. A higher residual value means lower monthly lease payments because you're only paying for the depreciation during the lease period.
Can I buy the car at the end of the lease?
Yes, most leases include a purchase option at the end of the term. The buyout price is typically the residual value plus any applicable fees. This can be a good option if you've grown attached to the car or if its market value is higher than the residual value.
What are typical mileage limits for car leases?
Standard lease agreements typically allow 12,000-15,000 km per year. Exceeding this limit results in additional charges, usually ₹5-10 per extra kilometer. If you drive more than average, consider buying or negotiating a higher mileage lease (at higher monthly payments).
What is depreciation and how does it affect my decision?
Depreciation is the loss in value over time. Cars typically lose 15-20% of their value annually. When you buy, you absorb this loss but own the remaining equity. When you lease, the lease payment covers this depreciation, but you don't own the car at the end.