Car Lease Calculator
Determine if leasing is right for you. Calculate monthly payments, total costs, and compare leasing vs. buying options.
Lease Calculation
Lease Details
Important Note
This calculator provides estimates only. Actual lease terms may vary based on credit score, promotions, and dealer fees. Always review the lease agreement carefully before signing.
Car Leasing Insights
Is Leasing Right For You?
Leasing a car can be an attractive option if you prefer lower monthly payments, enjoy driving a new vehicle every few years, and don’t want to worry about long-term maintenance. However, leasing typically costs more in the long run compared to buying and keeping a car for many years.
Lease vs. Buy Comparison
| Factor | Leasing | Buying |
|---|---|---|
| Monthly Payment | Lower | Higher |
| Long-term Cost | Higher (continuous payments) | Lower (payments end) |
| Ownership | No ownership | Own the vehicle |
| Mileage Restrictions | Yes (typically 10-15k/year) | No restrictions |
| Vehicle Changes | Every 2-4 years | When you decide to sell |
| Maintenance | Covered under warranty | Owner responsible |
| Customization | Limited | Unlimited |
Key Lease Terminology
Money Factor
The lease equivalent of an interest rate. Multiply by 2400 to get approximate APR.
Residual Value
The estimated value of the car at the end of the lease term.
Capitalized Cost
The agreed-upon price of the vehicle for leasing purposes.
Mileage Allowance
The maximum miles you can drive without paying extra fees (typically 10-15k/year).
Negotiating Your Lease
Negotiation Tips
- Research the vehicle’s invoice price
- Negotiate the capitalized cost first
- Compare money factors from different lenders
- Ask about residual value percentage
- Request fee breakdown and question unnecessary fees
Fees to Watch For
- Acquisition fee ($500-$1,000)
- Disposition fee ($300-$500)
- Excess mileage fee ($0.15-$0.30/mile)
- Excess wear-and-tear charges
- Documentation fees ($100-$500)
When Leasing Makes Sense
Leasing is often most advantageous for business owners who can deduct lease payments, individuals who want predictable transportation costs, and those who prefer driving a new car every few years with the latest safety and technology features. It may also be beneficial if you drive an average number of miles (12,000-15,000 per year) and maintain your vehicle well.
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