Should I Lease or Purchase a Car? Calculator
Should you lease or buy a car? Use this calculator to calculate your monthly payments and total net cost. By comparing these amounts, you can determine which is the better for you.
Vehicle Purchase Price
Enter the purchase price of the vehicle.
Sales Tax Percent
Enter the automobile sales tax rate for your state. Depending on your state, this may vary from 0% to 8%.
Enter any rebates offered by the dealer.
Title & Registration Fees
Enter title and registration fees for your state. These fees depend on many factors including the type of car, year, state, # of axles, etc.
Enter the loan term in months. A 5 year loan would have a term of 60.
Enter the interest rate for the auto loan.
Loan Down Payment
Enter the down payment you plan to make on the loan.
Cash Down (Capital Reduction)
Enter the cash you put down for the lease. Also known as capital reduction.
Enter the lease term in months. A 3 year lease would have a term of 36.
Monthly Lease Payment
Enter the total monthly payment on the lease.
Other Lease Fees
Enter any other lease fees.
Total Loan Payments at end of Lease.
Total loan payments made up until the end of the lease term. To compare the lease
against the loan we total the loan data up until the end of the lease.
Loan Down Payment
Down payment for the loan.
Loan balance remaining to be paid at the end of the lease term. Assumes you haven't
made extra payments.
Value of the vehicle at the end of the lease term using the depreciation selected.
This value is subtracted from total loan costs (total loan payments, down payment
and loan balance) to determine the adjusted loan cost.
Adjusted Loan Cost
This value is used to compare the cost of the loan to the cost of a lease at the
end of the lease term. If the lease term is less than the loan term the loan costs
are taken at the end of the lease term. For example, if the loan term is 48 months
and the lease term is 36 months the loan costs are taken after 36 months. Vehicle
value is subtracted from total loan costs (total loan payments, down payment and
loan balance) to determine adjusted loan cost.
Yearly Loan Costs
Yearly cost of the loan until the end of the lease term. Adjusted Loan Cost divided
by lease term.
Total Lease Payments
Total cost of all lease payments made over the term of the lease.
Total Lease Cost
Total cost of the lease including all payments, deposits and fees.
Yearly Lease Cost
Yearly cost of the lease. Total cost divided by lease term.
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About.com - "Should you buy or lease a car?" provides an FAQ to help you determine the best choice for your situation.
Kelly Blue Book will help you find out what your prospective car or truck is worth. Don't overpay! Get the facts before you head to the dealer.
Car Financing With a Credit Union Because credit unions are member-owned and member-operated, they pay-it-forward to members in the form of better interest rates and lower fees (instead of sending profits up to shareholders, like at a bank.).