Lease vs Buy Calculator

Compare the total cost of leasing vs financing a car

Vehicle

Vehicle Price

Comparison Period (years)

Lease

Monthly Lease Payment

Lease Term (months)

Down Payment (Lease)

Buy (Finance)

Down Payment (Buy)

20% recommended

Loan Rate (%)

Loan Term (months)

Residual Value

What car is worth at end of period

Total Lease Cost

Total Buy Cost

Lease / Month

Buy / Month

// Lease Pros

Lower monthly payments, drive a newer car more often, warranty coverage, no resale hassle. Ideal if you like switching cars every 3-5 years.

// Buy Pros

You own the asset, no mileage restrictions, freedom to modify, cheaper long-term if you keep the car 7+ years. Builds equity you can sell later.

// Hidden Lease Costs

Watch for mileage penalties (excess km fees), wear-and-tear charges, early termination fees, and balloon payments. Read the fine print carefully.

// SA Market

In South Africa, balloon/residual value financing is common. The residual inflates the effective interest cost. Always negotiate the residual down and consider paying it off early.