When you are looking for a new car, one of the first questions you should ask is: Should I lease or buy?
Leasing a car means that you pay a monthly fee to rent the car for a set period of time, usually anywhere from 24 to 42 months, and with a set number of miles, usually between 8,000 to 15,000 per year. After the lease is up, you return the car.
When you finance a car with an auto loan, you make monthly payments for a period of usually 36 to 84 months, after which you own the vehicle and can do with it what you please.
With the varying lengths of loan and lease terms, residual values, maintenance and other fees, it can be initially challenging to determine which financing option makes the most sense for you.
To help you calculate your options, we’ve created this Lease vs. Purchase Car Loan Calculator that shows you the costs side by side so that you can compare the two.
The auto loan portion of the calculator takes into account the purchase price of the car, the sales tax, any rebates, other fees, loan length, down payment, interest rate and vehicle depreciation to determine the costs of your car purchase. Then, you can input the costs of the lease, including the down payment, monthly payments, length of the lease and any other lease fees. You can compare the two options side by side to see how much each option will cost you each year and the total costs until the end of the lease term. The easy-to-read cost comparison can then help you decide whether to purchase or lease a car.
When it comes to the lease vs. buy decision, our Auto Loan Lease versus Purchase Calculator is one tool that allows you to see which option may be best for you in the moment. Once you’ve made your decision, apply for a Mission Fed Auto Loan with Mission Fed Bottom Line Rates Every Day. You can also benefit from our partnership with Autoland for a seamless car-buying experience. Whether you decide to lease or purchase your car, having Mission Fed by your side makes for a smooth ride.
Rates and Terms will vary based on collateral and credit. Programs, rates, terms, conditions and services are subject to change without notice. All accounts and loans are subject to approval.
Interactive calculators are made available as self-help tools, and we cannot and do not guarantee their accuracy or applicability to your circumstances. All examples are hypothetical and are for illustrative purposes only. Calculators are not intended to provide investment advice, and we encourage you to seek personalized advice from qualified professionals regarding all your personal financial issues.