Is leasing cheaper than buying?

Leasing often has lower monthly payments but you do not own the car at the end. Buying costs more per month but you have an asset to sell. The total cost depends on the deal terms and how much the car depreciates.

What happens at the end of a lease?

You return the car and walk away (or take a new lease). You may face excess mileage or damage charges. With buying, you can sell the car or keep driving it payment-free.

Should I buy or lease a new car?

Lease if you want a new car every 2-3 years and low hassle. Buy if you plan to keep the car long-term, do high mileage, or want to modify it. Run the numbers for your specific situation.

Is it better to lease or buy a car?

Leasing gives lower monthly payments and a new car every 2-4 years, but you never own the car. Buying means higher payments but you own an asset. For those who want a new car regularly, leasing is convenient. For keeping cars long-term (5+ years), buying is cheaper overall.

What are the disadvantages of leasing?

You never own the car, there are mileage limits (typically 8,000-15,000 per year) with costly excess charges, damage charges at return, early termination penalties, and you cannot modify the car. You also need gap insurance as you do not own the car.

CarCalcs

Lease vs Buy Calculator

Compare total cost of leasing versus buying a car.

Buy (Finance)

Car Price

Amount in pounds sterling

Deposit

Amount in pounds sterling

Interest Rate (APR)

Interest rate as a percentage

Term

Term in months

Estimated Residual Value

What the car will be worth after the term

Lease

Initial Payment

Amount in pounds sterling

Monthly Payment

Amount in pounds sterling

Term

Term in months

How We Calculate This

Compares total outlay for both options. Buying cost = deposit + total payments - residual value. Lease cost = deposit + total payments.

Frequently Asked Questions

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Last updated: February 2026

All calculations are estimates. Actual figures may vary based on driving conditions, vehicle specifications, and other factors.