Should I lease or purchase a vehicle?

This tool helps you to decide if leasing is preferable to borrowing to acquire a vehicle.

It is assumed that you do not exercise the purchase option at the end of the lease term. With a vehicle loan, you will own the vehicle when the loan is paid off.

Your average yearly cost of owning a vehicle declines sharply after the first few years. This is due to smaller depreciation and financing expenses.

Your first year of a lease term is the most expensive since you pay extra lease-financing charges. As a lessee, you do not incur depreciation expenses.