Lease or buy — which costs less in total?

Lease payments look cheaper monthly. But over 5 years — the time it takes to do 2 leases — the math changes. We run both and pick a winner.

Typical lease term36 mo · 12k mi/yr
01Vehicle
$
yr
02Buy
03Lease
$
%
mo
$/mo
%
$/mo
$
mo
$/mo
2 cycles in 5yr
$5,000 down + $450/mo × 60mo
04 · The winner · 5 years
Total cost · BUY in 5 yearsWinner
$41,228
~$882/mo · residual $17,500
Total cost · LEASE × 2 in 5 years
$44,960
$450/mo × 60mo · 2 cycles
Save $3,732
Buy /mo
$882
Lease /mo
$630
Equity at Y5
$17,500
2 leases ≈
0 cars owned
What this means
Buying costs more per month but you own a $17,500 asset at year 5.
The lease costs $252 less per month, but 2 cycles ($44,960 total) leave nothing owned. Leasing wins if your employer deducts payments OR you need a new car every 3 years for work.
See segment-by-segment breakdown · timeline · mileage stress↓
02 · Where the money goes

Two bars · 5 years · same expense, different shape

Cost segments stacked · 5-year total
$38k$9k$6k−$18k residual$41k$5k$29k$11k$45k$0k$16k$32k$48kBUYLEASE × 2
Down
Loan
Lease pmts
Insurance
Maintenance
The lease premium
+$3,732
Over 5 years, leasing costs more — for a car you never own.
When leasing makes sense
Business deducts the payments
Need a new car every 3 years
Drive ≤15k mi/yr reliably
Hate the resale-value risk
Timeline · same 5 years
BUY · 60-month loan, then owned$3,000 down · $882/mo × 60
FINANCED · MO 1–60
LEASE · 2 × 36-month cycles$2,500 down × 2 + $450/mo × 60mo
LEASE #1
LEASE #2
today36mo60mo
Hover each phase to see the detail
03 · Sensitivity

How miles and cycle length move the result

If you drive more miles…
Miles/yrBuy · 5yrLease · 5yr
8,000 mi$41k$45kBUY
12,000 mi$41k$45kBUY
15,000 mi$41k$49k · +$4k over-miBUY
20,000 mi$41k$55k · +$10k over-miBUY
If you change cars less often…
Lease termBuy · 5yrLease · 5yr
36 mo (2 leases)$41k$45kBUY
48 mo (2 leases)$41k$45kBUY
60 mo (1 leases)$41k$42kBUY
Pattern
Buy wins in 4 of 4 scenarios
The only case where leasing comes close: cycling cars every 5 years AND business deducts the payments. Otherwise leasing trades ~$18k of equity for the convenience of a new car every 36 months.
Once you decide buy
Auto loan TCO
Plug your numbers into the full ownership picture · loan + insurance + fuel + maintenance + depreciation.
Open ↗
Folding in the $882
Budget
Either choice eats a monthly slot. See where the payment lands in your budget.
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Save your work