Lease vs Buy — The Real Comparison
Most lease vs buy calculators compare monthly payments, which always makes leasing look better. The real comparison is total cost over your ownership period, factoring in the car's value you retain when buying vs. owing nothing at the end of a lease.
When Leasing Makes Sense
Leasing can be financially smarter if you drive under 12,000 miles/year, want a new car every 3 years, use the car for business (tax deduction), or can't afford the down payment on a purchase.
Frequently Asked Questions
Buying is usually better financially over 5+ years because you build equity. Leasing offers lower monthly payments but you own nothing at lease end. The right choice depends on how long you keep cars.
Hidden lease costs include excess mileage fees ($0.15-0.25/mile over limit), wear-and-tear charges at return, disposition fees ($300-400), and the fact that you restart payments from zero with every new lease.
Most standard leases allow 10,000-12,000 miles per year. You can negotiate higher mileage at signing (for a higher monthly payment) — it's much cheaper to pre-buy miles than pay excess mileage fees at return.