Lease vs buy vs cash

Compare leasing, financing, and paying cash over the same vehicle term.

Lowest Cost Option
Cash
$5,739 below highest-cost option
Loan Cost
$26,956
$1,105 first-year monthly
Cash Cost
$21,217
$46,350 upfront cash
Lease Cost
$22,950
$897 first-year monthly

Inputs

All options use the same vehicle and operating assumptions.

Vehicle

$
$
$
%

Lease

Years
$
$
$
$
Miles / year
$
Per mile.
$

Opportunity Cost

%

Operating Costs

$
Monthly premium.
$
Per gallon.
$
Monthly reserve.
%

Cost Breakdown

Loan Total Cost$26,956
Cash Total Cost$21,217
Lease Total Cost$22,950
Loan Shared Operating$14,125
Cash Shared Operating$14,125
Lease Shared Operating$14,125

Comparison Summary

All options are compared over 3 years.

OptionTotal CostBase CostShared OperatingOpportunity CostFirst-Year Monthly CostUpfront CashFinal Equity
Loan$26,956$26,956$14,125$3,993$1,105$9,350$8,769
Cash$21,217$21,217$14,125$10,431$372$46,350$25,133
Lease$22,950$22,950$14,125$2,175$897$3,650$0

Total Cost Comparison

Decision costs before investment opportunity cost.

Cumulative Cash Outflow

Upfront and annual cash outflows over 3 years.