Buying wins long-term
Lease vs. buy: the total cost model
Leasing covers depreciation only — you pay for the car's value loss during the lease, then return it. Buying costs more per month but you keep the asset. Over 10 years, buying almost always wins financially because you eventually drive a paid-off car. Leasing makes sense only for business deductions, frequent upgraders, or those who genuinely need the latest model.
Level
Try calculatorKey takeaways
04 · ideas- Leasing: you pay for depreciation only, then give it back
- Buying: higher monthly cost, but you keep the asset
- Over 10 years, buying almost always wins financially
- Leasing makes sense for business deductions or frequent upgraders
Leasing means paying to use a car for 2–4 years. You pay for the depreciation (the value lost during your use), then return the car. You build no equity.
Buying means paying the full price over time. After the loan is paid, you own the car — an asset with remaining value.
Monthly cost: Leasing is often cheaper per month. But monthly cost is the wrong comparison. Total cost over 10 years almost always favors buying.