Lease-to-Own vs. Buying Calculator
Compare the total long-term cost of buying a car outright versus leasing it before buying out the lease.
Scenario A: Buy Now
Vehicle Price
$
Loan Down Payment
$
Loan Interest Rate
%
Scenario B: Lease-to-Own
Lease Down Payment (Cap Reduction)
$
Monthly Lease Payment
$
Buyout Price (Residual)
$
Is Lease-to-Own worth it?
While leasing first provides lower monthly payments in the short term, it is almost always the more expensive path to ownership. Here is why:
- Double Interest: You pay the "Money Factor" (interest) during the lease, and if you finance the buyout later, you pay loan interest on that remaining balance.
- Acquisition Fees: Leases usually come with a $600–$900 acquisition fee that is not present in a traditional purchase.
- The Flex Benefit: The only advantage is flexibility. If you lease and decide you hate the car, you can walk away. If you buy, you are responsible for the resale.