★ COMPARISONS · CAR · BUY VS LEASE
On the defaults — a $30,000.00 car, 20.00% down, 6.00% over 60 months against a $350.00 lease plus $2,000.00 at signing and a $18,000.00 resale — buying nets $15,172.42 over 3 years and leasing totals $14,600.00: the lease wins by $572.42. This one is the EQUITY + BREAK-EVEN comparison — the loan balance still owed at resale, the equity kept, the monthly equivalents, and the three break-even reverses (resale $18,572.42, lease payment about $365.90 a month, loan APR about 4.95%) — the buy-vs-lease-car page is the TOTALS comparison — $20,523.61 buying against $17,259.00 leasing at its own defaults, leasing winning by $3,264.61, without the break-even reverses — and the lease-vs-buy-car page is the $35,000-car comparison — a $449 lease against a 55% residual, leasing winning by $1,143.02.
Put the price, down payment, loan rate and term, lease payment, signing amount and resale value in: a $30,000 car at 20% down and 6% nets $15,172.42 to buy over 3 years against $14,600.00 to lease. The break-even resale is $18,572.42.
It means that over 3 years, the buyer ends up $572.42 worse off than the lessee on these numbers — not because buying is expensive in itself, but because the loan balance eats most of the resale. The buyer pays $22,703.54 in cash over 3 years, then sells for $18,000.00, but must clear the $10,468.88 still owed on the loan, keeping only $7,531.12 of equity. The net 3-year cost of buying is therefore $15,172.42, or $421.46 a month. The lessee pays $2,000.00 at signing plus $350.00 a month for 36 months — $14,600.00 in total, or $405.56 a month — and hands the keys back with nothing kept. The $572.42 gap is the price of the equity the buyer builds minus the extra cash the buyer spends: the buyer spends more cash and keeps some value, and on these numbers the extra cash wins.
Never subtract the resale from the cash out and stop. The tempting shortcut — $22,703.54 of cash out minus $18,000.00 of resale equals $4,703.54 — is wrong by the whole loan balance, $10,468.88. The resale does not go to the buyer free and clear; the lender is paid first, and only the equity is the buyer's. Any buy-versus-lease comparison that skips the remaining balance flatters buying by exactly that balance, which is why so many back-of-envelope comparisons conclude that buying always wins. The honest buy cost is cash out plus balance minus resale, and this page shows all three figures so the shortcut is visible.
The resale assumption is the whole comparison. At $18,000.00 the lease wins by $572.42; at $15,000.00 the lease wins by $3,572.42; at $21,000.00 the buyer wins by $2,427.58. The break-even resale is $18,572.42 — a $3,000 swing in the resale assumption swings the answer by $3,000, because every resale dollar is a buy-side dollar. Before trusting any winner, check the resale against real listings for the same car at 3 years old: if the car holds value better than 60% of its price, buying improves fast; if it holds worse, leasing improves fast.
Three years is not the whole story. The comparison ends at 36 months because that is when the lease ends and the buyer would sell. But a buyer who keeps the car past the loan term drives payment-free for years, while a lessee signs a new lease and keeps paying — over 6 or 9 years the buyer usually wins by a wide margin, because the lease never stops and the loan does. The 3-year winner is the answer to "which costs less for 3 years of driving", not to "which is the better way to own a car". The buy full-term total on the defaults is $33,839.23 over 60 months, after which the car is owned outright.
On the defaults: $30,000 car, 20% down, 6% loan over 60 months, $350 a month lease for 36 months, $2,000 due at signing, $18,000 resale.
And the other way: buying ties leasing at a resale of $18,572.42, at a lease payment of $365.90 a month, and at a loan APR of 4.95% APR.
The defaults are a $30,000 car, 20% down, a 6% loan over 60 months, a $350 a month lease for 36 months, $2,000 due at signing, an $18,000 resale after 3 years, and a 36-month comparison horizon. The same car is compared on both sides, with no mileage overage, wear charges, disposition fees, maintenance differences or tax differences — a lease that charges for excess miles or wear costs more than the total shown, and a bought car that needs tires or brakes costs more than the total shown. The loan payment is the standard amortization payment on the financed amount; the balance after 36 months is the standard amortization balance, floored at zero if the horizon ever passed the loan term. The winner is decided on the rounded totals, the figures the page prints. The resale reverse is checked at $1 either side, because a $1 change in resale moves the buy net by $1; the lease reverse is checked at $1 either side, because a $1 change in the monthly payment moves the lease total by $36; the APR reverse is checked at 0.01% either side, and the flip sits between the 4.95% star and its lower neighbor, so the star is stated as about 4.95%. The model does not count insurance differences, the value of driving a new car every 3 years, or the buyer's payment-free years after the loan ends — all of which sit alongside the 3-year cost in a real decision.
These notes repeat in every explainer section because this page is built to be read start to finish: never subtract the resale from the cash out and stop; the resale assumption is the whole comparison; and three years is not the whole story.
| Output | Formula | What it means |
|---|---|---|
| Down payment | price × down payment % | $6,000.00 — $30,000.00 × 20.00%. |
| Loan monthly payment | loan × monthly rate ÷ (1 − (1 + monthly rate)^−months) | $463.99 a month — $24,000.00 at 0.50% a month over 60 months. |
| Loan balance after 36 months | standard amortization balance formula | $10,468.88 — what is still owed on the loan when the car is sold. |
| Equity kept at resale | resale value − loan balance | $7,531.12 — $18,000.00 − $10,468.88. |
| Buy cash out over 3 years | down payment + 36 loan payments | $22,703.54 — $6,000.00 + $463.99 × 36. |
| Buy net 3-year cost | cash out + loan balance − resale value | $15,172.42 — $22,703.54 + $10,468.88 − $18,000.00. |
| Lease 3-year total | due at signing + 36 lease payments | $14,600.00 — $2,000.00 + $350.00 × 36. |
| Winner margin | higher 3-year cost − lower 3-year cost | $572.42 — $15,172.42 − $14,600.00. |
| Reverse: Resale value at which buying ties leasing | step | $18,572.42: Buying: $6,000.00 down, $463.99 a month for 60 months, $10,468.88 still owed after 36 months, $8,103.54 equity from a $18,572.42 resale — 3-year net cost $14,600.00 ($405.56 a month). Leasing: $2,000.00 due at signing + $350.00 a month x 36 = $14,600.00 ($405.56 a month). An exact tie — both cost the same over 3 years. |
| Reverse: Lease payment at which leasing ties buying | step | $365.90 a month: Buying: $6,000.00 down, $463.99 a month for 60 months, $10,468.88 still owed after 36 months, $7,531.12 equity from a $18,000.00 resale — 3-year net cost $15,172.42 ($421.46 a month). Leasing: $2,000.00 due at signing + $365.90 a month x 36 = $15,172.40 ($421.46 a month). The lease wins by $0.02. |
| Reverse: Loan APR at which buying ties leasing | step | 4.95% APR: Buying: $6,000.00 down, $452.36 a month for 60 months, $10,316.31 still owed after 36 months, $7,683.69 equity from a $18,000.00 resale — 3-year net cost $14,601.27 ($405.59 a month). Leasing: $2,000.00 due at signing + $350.00 a month x 36 = $14,600.00 ($405.56 a month). The lease wins by $1.27. |
| 10% down instead of 20% | same model | Buying: $3,000.00 down, $521.99 a month for 60 months, $11,777.49 still owed after 36 months, $6,222.51 equity from a $18,000.00 resale — 3-year net cost $15,568.98 ($432.47 a month). Leasing: $2,000.00 due at signing + $350.00 a month x 36 = $14,600.00 ($405.56 a month). The lease wins by $968.98. |
| 30% down instead of 20% | same model | Buying: $9,000.00 down, $405.99 a month for 60 months, $9,160.27 still owed after 36 months, $8,839.73 equity from a $18,000.00 resale — 3-year net cost $14,775.87 ($410.44 a month). Leasing: $2,000.00 due at signing + $350.00 a month x 36 = $14,600.00 ($405.56 a month). The lease wins by $175.87. |
| $300 a month lease instead of $350 | same model | Buying: $6,000.00 down, $463.99 a month for 60 months, $10,468.88 still owed after 36 months, $7,531.12 equity from a $18,000.00 resale — 3-year net cost $15,172.42 ($421.46 a month). Leasing: $2,000.00 due at signing + $300.00 a month x 36 = $12,800.00 ($355.56 a month). The lease wins by $2,372.42. |
| $400 a month lease instead of $350 | same model | Buying: $6,000.00 down, $463.99 a month for 60 months, $10,468.88 still owed after 36 months, $7,531.12 equity from a $18,000.00 resale — 3-year net cost $15,172.42 ($421.46 a month). Leasing: $2,000.00 due at signing + $400.00 a month x 36 = $16,400.00 ($455.56 a month). The buyer wins by $1,227.58. |
| $15,000 resale instead of $18,000 | same model | Buying: $6,000.00 down, $463.99 a month for 60 months, $10,468.88 still owed after 36 months, $4,531.12 equity from a $15,000.00 resale — 3-year net cost $18,172.42 ($504.79 a month). Leasing: $2,000.00 due at signing + $350.00 a month x 36 = $14,600.00 ($405.56 a month). The lease wins by $3,572.42. |
| $21,000 resale instead of $18,000 | same model | Buying: $6,000.00 down, $463.99 a month for 60 months, $10,468.88 still owed after 36 months, $10,531.12 equity from a $21,000.00 resale — 3-year net cost $12,172.42 ($338.12 a month). Leasing: $2,000.00 due at signing + $350.00 a month x 36 = $14,600.00 ($405.56 a month). The buyer wins by $2,427.58. |
| 3% loan APR instead of 6% | same model | Buying: $6,000.00 down, $431.25 a month for 60 months, $10,033.42 still owed after 36 months, $7,966.58 equity from a $18,000.00 resale — 3-year net cost $13,558.37 ($376.62 a month). Leasing: $2,000.00 due at signing + $350.00 a month x 36 = $14,600.00 ($405.56 a month). The buyer wins by $1,041.63. |
| $0 due at signing instead of $2,000 | same model | Buying: $6,000.00 down, $463.99 a month for 60 months, $10,468.88 still owed after 36 months, $7,531.12 equity from a $18,000.00 resale — 3-year net cost $15,172.42 ($421.46 a month). Leasing: $0.00 due at signing + $350.00 a month x 36 = $12,600.00 ($350.00 a month). The lease wins by $2,572.42. |
| 100% down — cash purchase, no loan | same model | Buying: $30,000.00 down, $0.00 a month for 60 months, $0.00 still owed after 36 months, $18,000.00 equity from a $18,000.00 resale — 3-year net cost $12,000.00 ($333.33 a month). Leasing: $2,000.00 due at signing + $350.00 a month x 36 = $14,600.00 ($405.56 a month). The buyer wins by $2,600.00. |
| $0 resale value | same model | Buying: $6,000.00 down, $463.99 a month for 60 months, $10,468.88 still owed after 36 months, −$10,468.88 equity from a $0.00 resale — 3-year net cost $33,172.42 ($921.46 a month). Leasing: $2,000.00 due at signing + $350.00 a month x 36 = $14,600.00 ($405.56 a month). The lease wins by $18,572.42. |
| $0 lease — $0 a month and $0 due at signing | same model | Buying: $6,000.00 down, $463.99 a month for 60 months, $10,468.88 still owed after 36 months, $7,531.12 equity from a $18,000.00 resale — 3-year net cost $15,172.42 ($421.46 a month). Leasing: $0.00 due at signing + $0.00 a month x 36 = $0.00 ($0.00 a month). The lease wins by $15,172.42. |
| 0% loan APR | same model | Buying: $6,000.00 down, $400.00 a month for 60 months, $9,600.00 still owed after 36 months, $8,400.00 equity from a $18,000.00 resale — 3-year net cost $12,000.00 ($333.33 a month). Leasing: $2,000.00 due at signing + $350.00 a month x 36 = $14,600.00 ($405.56 a month). The buyer wins by $2,600.00. |
Figures are the model's own amortization arithmetic on the numbers you type, computed from unrounded values: the loan payment is the standard fixed-payment formula, the balance after the horizon is the standard amortization balance, equity is resale minus balance, buy net cost is down payment plus horizon payments plus balance minus resale, and the lease total is due at signing plus horizon payments times the monthly payment. The displayed figures are rounded to 2dp, and the winner is decided on those rounded totals. The main limitations are the assumptions the page states: no mileage or wear charges, no disposition fee, no maintenance or repair differences, no tax differences, and a single resale estimate for a car whose real 3-year value moves with condition, mileage and the used market. The page also stops at 36 months — it does not credit the buyer's payment-free years after the loan ends, which is where buying usually wins over longer horizons. This page is a calculation tool, not financial advice, and not a dealer quote.
On a $30,000 car with 20% down and a 6% loan over 60 months against a $350 a month lease for 36 months plus $2,000 due at signing and an $18,000 resale, buying costs $15,172.42 net over 3 years and leasing costs $14,600.00 — the lease wins by $572.42. Source: Bright Side Kit, brightoolbox.com.
On these defaults, lease — by $572.42. Buying nets $15,172.42 over 3 years after $7,531.12 of resale equity, while leasing totals $14,600.00. Change the resale or the payment and the winner can flip.
Because the loan balance is still owed at resale. Cash out of $22,703.54 minus an $18,000 resale is $4,703.54 only if the car is owned free and clear — but $10,468.88 is still owed, so the true net cost is $15,172.42.
$18,572.42. At $18,571.42 the lease wins by $1.00; at $18,573.42 the buyer wins by $1.00. Every $1,000 of resale moves the answer by $1,000.
About $365.90 a month. At $364.90 the lease wins by $36.02; at $366.90 the buyer wins by $35.98. At the rounded star the lease wins by $0.02.
About 4.95%. At 4.94% the buyer wins by $4.13; at 4.95% the lease wins by $1.27 — the flip sits between the star and its lower neighbor.
Usually, yes. This comparison ends at 36 months, when the lease ends and the buyer would sell. A buyer who keeps the car past the 60-month loan drives payment-free, while a lessee signs a new lease and keeps paying.
Mileage overage, wear charges, disposition fees and tax differences. A lease that charges for excess miles or wear costs more than $14,600.00, and a bought car that needs tires or brakes costs more than $15,172.42.
$7,531.12 on these defaults. The $18,000 resale minus the $10,468.88 loan balance still owed. With 100% down there is no balance, and the full $18,000 is equity.