OwnVsLease

OwnVsLease

The true cost of driving. Find the exact breakeven point between financing and leasing.

Start from
How Long You Keep It
5 years
Negotiated Car Price
$40,000
Investment Return
7.0%

What each choice really costs you

Shorter bar wins

Over 5 years, owning costs about $936 less — roughly $16/month.

The Verdict

Over 5 years, the better financial decision is Owning.

Assuming you invest the cash flow differences at 7%.

Price Inflection Point
Calculating…
Net Worth Difference
$0
 

Financing (Own)

$
mo
Interest Rate
%
Retained Value at 3 Yrs 55%

Controls the depreciation curve. Toyota/Honda retain ~65%. Luxury brands retain ~45%.

Leasing (Rent)

$
Monthly Payment
$
3.0%
mo
$

If you keep the car longer than the Lease Term, we assume you return it and lease an identical one under the exact same terms. If your timeline ends mid‑lease, the unused share of that deposit is credited back — mirroring the resale value an owner recovers.

Owner End State

Year 5
Final Car Value$0
Remaining Loan-$0
Invested Cash$0
Total Net Worth$0

Leaser End State

Year 5
Final Car Value$0 (Bank)
Total Fees Paid-$0
Invested Cash$0
Total Net Worth$0

Beyond the Spreadsheet

Why Own Anyway?

  • No mileage limits or anxiety about driving too much.
  • Freedom to customize, modify, or sell the car at any time.
  • Eventual payment-free months once the loan is fully paid off.

Why Lease Anyway?

  • Always driving a car under warranty with the latest tech and safety.
  • Zero risk on resale value crashing due to market shifts or accidents.
  • Often lets you drive a nicer, more expensive car for a lower monthly payment.