Car Lease vs Buy
Leasing looks cheaper each month - but you end with nothing, while a buyer keeps a car worth real money. This compares your net worth on each path, counting depreciation, resale value and the money you could have invested instead.
Both paths spend the same monthly budget; whoever pays less invests the difference at your investment return. Buying keeps the car's resale value (price depreciated) minus any loan left. Excludes fuel, insurance and maintenance, which are similar either way. A model, not financial advice.
Frequently asked
Is it cheaper to lease or buy a car?
Over a single lease term, leasing often has the lower monthly payment - but you end with nothing to show for it, while a buyer ends with a car they own. The honest comparison counts the whole picture: the buyer keeps a depreciating asset (its resale value minus any loan left), while the lessee pays less monthly and can invest the difference. Whether buying or leasing wins depends mainly on how long you keep the car and how fast it depreciates.
Why does how long I keep the car matter so much?
Because a lease never stops charging you - lease, return, lease again, forever. Buying front-loads the cost but then the payments end and you drive a paid-off car whose remaining value is yours. The longer you keep a bought car past the loan payoff, the more decisively buying wins. If you always want a new car every two or three years, leasing can be competitive; if you keep cars for years, buying almost always comes out ahead.
What is the opportunity cost this calculator captures?
The money tied up in a car is money not invested. This tool gives both scenarios the same monthly budget: whoever pays less each month invests the difference at your investment return, and the down payments are handled the same way. That is the fair comparison - not just "which monthly payment is smaller", but "which path leaves me wealthier once you count the car's resale value and everything you could have invested".
How fast do cars depreciate?
A typical new car loses roughly 15-20% of its value each year, and often more in year one - around 20-30% the moment you drive off the lot. Depreciation is the single biggest cost of car ownership, far bigger than fuel or interest. High depreciation hurts buyers (their asset shrinks) but is baked into lease pricing too. Enter a realistic rate and watch how strongly it moves the result.
Is a car ever a good financial decision?
A car is a depreciating asset - financially it is a cost to minimise, not an investment. The goal is to meet your transport needs at the lowest lifetime cost, then invest what you save. Buying a reliable car and keeping it for many years is usually the cheapest path; leasing luxury you would not otherwise buy is usually the most expensive. This calculator helps you see the real number behind the monthly-payment illusion.
Can Alvest track my car in my net worth?
Yes. Alvest can include your vehicle and its loan alongside your investments for a true net-worth picture, and helps you weigh big purchases against investing. You can start free.