Lease or Buy Comparison Calculator
Instantly compare costs and monthly breakdowns for lease and purchase—built for transparency, accuracy, and real-world decisions.
Purchase
Lease
Cost Over Time
The residual value is the car’s estimated cash value at lease-end—set by the lender, not negotiable. Your payments only cover the expected “depreciation” plus financing. Higher residual means lower monthly cost, but does not necessarily reflect what you’ll pay if you want to buy the car at end of lease.
Frequently Asked Questions
- What is the Money Factor? Dealer’s way to show interest rate for leases. Multiply MF by 2400 for approximate APR.
- How do incentives impact cost? They reduce the capitalized cost but some are not available for leases. Always request line-item details.
- What’s a “good” lease? One with a low MF, high residual (if you won’t buy at end), and minimal up-front fees; beware of “dealer add-ons.”
- Lease pitfalls and tips: Watch for hidden fees, inflexible mileage, and marked-up rates. Always get all terms and rates in writing.
- Negotiation: Negotiate the sale price and money factor just like a purchase. Ask for all official incentives, and avoid “marked up” add-ons.
- Purchase vs Lease: Lease is usually lower monthly cost, but buying builds equity. Compare total costs, not just monthly!
- Disclaimer: Calculations are estimates only. Taxes, incentives, fees, and residuals vary by model, region, and lender.
- Need help? Email brian.iselin@iselingroup.com or visit iselingroup.com.