Lease vs. Buy Calculator

Description

When is it a better deal to lease a car versus purchase a car with a loan? While there are many factors besides cost, this financial tool will calculate the total cost of a lease versus the total cost of a car loan.

When to Use

Use the Lease versus Buy calculator when:

  • You want to know whether it is more expensive to lease versus buy a car
  • You want to determine whether to lease or buy a piece of equipment (computer, stereo etc.)
What information you will need

To effectively use this financial tool kit it is best To have the following on hand:

Car BUYING Information

  • cost of your dream auto
  • amount of down payment
  • amount of the car loan
  • interest rate
  • term of the loan
  • estimated value of the car at the end of the note

LEASE Information

  • down payment amount (including security deposit)
  • term of the lease
  • monthly lease payment
  • # miles in lease and rate for excess miles
  • termination fees
  • capitalized value of the lease (what the lease says the purchase value of the car is)
  • estimated value of car at time of surrender (the lease company can tell you their estimate)

Note: You do not need to have all the information to use the tool, but the more you have available, the more accurate the calculation.

Date:
Title:

General Information:

Car Make: Model: Year:

Purchasing the Car:

Purchase Price:
Down Payment: (include value of trade-in)
Term of Loan in Years:
Interest rate: (Enter 7 ¾% as 7.75)
Expected Market Value:
(At the end of the Loan / Lease which ever is shorter)

Leasing the Car:

Down Payment:
(include cash down payment, security deposit, licensing fees, etc.)
Monthly Lease payment: (including sales tax)
Number of months:
Termination (turn in) Fees:
Mileage:
Annual miles in lease:
Rate per mile for excess: (Enter 15¢ as .15)
Your estimated annual mileage:
Other End of Lease Charges (exclusive of excess miles):
Security deposit Refund amount:
Value of car at turn in:
(from car lease company...typically 50-70% of new for 24 month lease)

Enter Saving Preference

Savings interest Rate: (Enter 7 ¾% as 7.75)
(This is used to calculate the value of your savings)
If I had extra money I would:
My Tax Rate:

Hint: Use the savings preference area if you wish to account for the true cost of the additional money you will spend over time on your lease or your loan. If this is not important, simply tell the calculator you will spend the savings.