How the comparison works
Over the lease term, the lease costs what you pay at signing plus every payment. Buying costs your down payment plus the loan payments made so far, minus the equity you have at the end: what the car is worth less what you still owe. The lower net cost wins for that period.
When each makes sense
- Lease if you want a new car every few years, drive under the mileage limit and like a lower payment.
- Buy if you keep cars a long time, drive a lot, or modify them. After the loan is paid, the years with no payment are where buying wins.