“Should I lease or buy?” sounds like a preference question. It isn’t — it’s a math question with a clear structure, and the honest answer comes down to how long you’ll keep the car and how many miles you drive. Lease the same $35,000 car for nine years and you’ll spend thousands more than the person who bought it and kept driving. Here’s how to tell which side you’re on.
What you’re actually paying for
The whole difference comes down to one word: depreciation.
| Lease | Buy (finance) | |
|---|---|---|
| You pay for | Only the depreciation you use | The entire car |
| Monthly payment | Lower | Higher |
| At the end you have | Nothing — you hand it back | A car you own |
| Equity built | None | Grows with each payment |
| Mileage | Capped (fees over the limit) | Unlimited |
A lease is a long-term rental: lower payment, but you’re renting the most expensive years of the car’s life and walking away with zero. Buying costs more monthly, but every payment buys a sliver of an asset you keep.
The monthly payment is a trap if you stop there
Yes, the lease payment is lower — that’s the bait. The honest comparison is total cost over the years you’ll actually drive, including what you own at the end:
| Over ~9 years | Lease (3 leases back-to-back) | Buy and keep |
|---|---|---|
| Payments | Continuous, never stop | End after ~5 years |
| Years driving payment-free | 0 | ~4 |
| Asset at the end | Nothing | A paid-off car worth $X |
That stretch of payment-free years is exactly where buying pulls ahead. Our lease vs buy calculator runs your real numbers — payment, term, mileage and residual — to find the crossover.
Leasing optimizes the monthly payment. Buying-and-holding optimizes the decade. Pick the horizon that matches your life.
The mileage and wear traps
Leases cap your mileage, usually 10,000–15,000 miles a year, and bill you for every mile over — often 15–25 cents each. Drive 5,000 extra miles a year and that “cheap” lease quietly adds $750–$1,250 at turn-in, plus charges for dents, scuffs and worn tires. If your driving is unpredictable, those caps erase the lease’s payment advantage fast.
Who should lease, who should buy
| Lease if you… | Buy if you… |
|---|---|
| Want a new car every 2–3 years | Keep cars 6+ years |
| Drive predictable, low miles | Drive a lot or unpredictably |
| Value the lowest steady payment | Want to stop paying eventually |
| Can deduct it as a business cost | Want an asset and full ownership |
The nine-year cost, with numbers
Put rough figures on a $35,000 car to see the crossover:
| Over 9 years | Lease (3× 3-yr leases) | Buy and keep |
|---|---|---|
| Total paid | ~$36,000+ | ~$38,000 (5-yr loan) |
| Years with no payment | 0 | ~4 |
| Owned at the end | $0 | a car worth ~$8,000 |
| Net cost | ~$36,000 | ~$30,000 |
Leasing looks cheaper month to month, but buying-and-holding wins the decade by roughly the value of the car you still own. The math flips only if you’d genuinely replace the car every three years regardless.
Decide with your numbers
Don’t let the showroom payment decide for you. Put the price, lease terms, mileage and how long you’ll keep the car into the lease vs buy calculator, and read the auto loans guide for the rest — financing the purchase the smart way if you decide to buy.
