Lease vs Buy: Low-Budget Commuter Car
Compare leasing versus buying an affordable commuter car with a low monthly payment and modest down payment.
How to use this tool
- Choose the comparison term in months.
- Enter the lease drive-off cash and monthly lease payment.
- Enter the purchase price, down payment, and monthly loan payment.
- Enter the car's expected resale value and any loan balance at term end.
- Read the buy advantage and which option costs less.
For everyday commuters, a small lease payment might seem attractive — but buying could save more in the long run.
Frequently asked questions
- Is it cheaper to lease or buy a car?
- Over a single term, buying is usually cheaper because you keep the car's resale value, while every lease dollar is spent. Leasing can win when the car depreciates fast or you replace vehicles every few years.
- What costs does this comparison leave out?
- It ignores lease mileage-overage and wear charges, the opportunity cost of cash, and the convenience of always driving a newer car under warranty. Add those qualitatively to the dollar result.
- Why does resale value matter so much?
- Resale value is the equity a buyer recovers at the end. A car that holds its value makes buying far cheaper; a car that depreciates quickly narrows or reverses the gap.