Lease vs Buy Car
Find Out If Leasing or Financing is Right for You
Answer a few quick questions about your preferences and plans for owning a vehicle. Your input is secure and will only be used to calculate the best option for you. Your results will include:
- A personalized recommendation: leasing or financing
- Insights into how the choice aligns with your needs
- Financial implications based on your preferences
About Lease/Buy Tool
- Results calculated using advanced mathematical methods
- Utilizes the Weighted Sum Model and AHP (Analytic Hierarchy Process)
- Designed to provide a reliable and objective recommendation
Terms of Use
Before starting the assessment, please read the Terms of Use carefully and keep in mind that:
- Informational Purposes Only. This tool is not intended to provide financial, legal, or tax advice. The recommendations generated are based solely on the information you provide and are for guidance purposes only. Consult a qualified professional for specific advice regarding your financial situation.
- No Guarantees. The results provided by this tool are estimates and do not guarantee any financial outcomes. Decisions made based on this tool's recommendations are your responsibility.
- Not a Contract. Using this tool does not create any contractual or advisory relationship between you and the service provider.
- Secure Data. Your data is protected and will not be shared or used to identify you. However, you are responsible for ensuring that the information you provide is accurate and complete.
- Limitation of Liability. The service provider is not liable for any losses, damages, or legal claims arising from the use of this tool or decisions made based on its recommendations.
By proceeding, you acknowledge and agree to these terms.
How long do you plan to keep the car?
First 3 years: The highest depreciation occurs as the vehicle loses its value the fastest during this period.
4–5 years: Depreciation slows down, making this a more economical choice for long-term ownership.
After 5 years: Depreciation becomes more gradual, but maintenance costs may start to rise.
| Year of Ownership | Estimated Residual Value (% of Original Price) |
Annual Depreciation (% per Year) |
|---|---|---|
| 1st Year | 80–85% | 15–20% |
| 3rd Year | 60–65% | 10–15% |
| 5th Year | 40–45% | 10–15% |
Monthly Payment: What’s more important to you?
On average, leasing a car tends to be more affordable in terms of monthly payments — approximately 30% less than financing the same vehicle through a loan over the same term.
Sources: Kelley Blue Book, Nerdwallet
What is the estimated annual mileage (distance you expect to drive) for the vehicle?
The average annual mileage in the U.S. is around 14,000 miles per passenger vehicle, according to the Federal Highway Administration (FHWA). Urban residents typically drive less, averaging 8,000-10,000 miles annually, while suburban and rural residents, who often have longer commutes, may exceed 15,000-20,000 miles per year or more.
Sources: Federal Highway Administration
How easy is it for you to keep the vehicle in good condition?
Damage such as dents, scratches, windshield cracks, tire wear, and interior stains can cost over $1,000 at the end of a lease in the U.S. If these issues are not addressed, they may result in significant charges when returning the vehicle to the leasing company.
Do you plan to make modifications or customize the vehicle?
When leasing a vehicle, modifications may be restricted or require approval from the leasing company. At the end of the lease, the vehicle must be returned to its original condition. Any alterations could be considered excessive wear and tear, leading to additional charges.
In the event of financial difficulties, which option is more acceptable?
Early termination of a lease can result in penalties and negatively impact your credit score. On the other hand, loan restructuring may offer more flexible terms to continue payments and help avoid financial difficulties in the future.
Calculator
Total Cost of Ownership
| Lease | Buy |
Result
Weighted Sum Model (WSM)
| Lease 0 | Buy 0 | |
|---|---|---|
| Ownership Term | ||
| Monthly Payment | ||
| Mileage | ||
| Maintenance | ||
| Modifications | ||
| Financial Flexibility |
Multi-criteria Decision Making Using the Analytic Hierarchy Process
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Interview ID: 9fdafb27-b7b8-4312-a729-fdb14aa6c2dc
Lease Vs. Buy is a service that calculates the optimal choice between leasing and buying a car based on your answers and preferences.
It combines the results of two methods, taking their relative importance into account. This allows for the integration of evaluations
from both approaches (Weighted Sum Model + AHP) into a single, well-informed decision.