Net Cost Analysis

We don't just compare monthly payments. This tool calculates the Total Cost of Ownership. For financing, this is (Purchase Price + Interest - Resale Value). For leasing, it is the sum of all payments plus fees. This reveals which option truly drains less wealth over time.

The Depreciation Factor

Depreciation is the largest cost of owning a car. Our calculator visualizes this curve. If you buy a car that loses value quickly (like luxury sedans), leasing is often safer because the bank takes the risk on the future value, not you.

Should I Buy New or Used?

The "Sweet Spot" Strategy: A 3-year-old used car has typically already lost 30-40% of its value (the steepest part of the depreciation curve). Buying used allows you to avoid this initial hit. However, new cars often offer subsidized interest rates (0-2% APR) which can offset the higher price tag compared to high-interest used car loans.

When to Lease (The Checklist)

• You drive under 12,000 miles per year.
• You enjoy driving a new car every 3 years.
• You want to avoid out-of-warranty repair risks.
• You can deduct lease payments as a business expense.

When to Finance/Buy (The Checklist)

• You drive high mileage (15k+ miles/year).
• You plan to keep the car for 6+ years.
• You want to modify or customize the vehicle.
• You want to build equity (eventually driving payment-free).