Decision Studio / Car
Own the car. Or lease it.
The monthly payment is only the beginning. Choose how long you will drive. Compare keeping one purchased car with leasing over that same period, including your car’s remaining value and the savings you could invest.
Over 36 months · Your estimates
Buying leaves you $1,374 ahead.
Car-related net worth after your chosen driving duration: buyer investments plus car value minus debt, compared with lessee investments after return fees.
Keep one bought car for 3 years versus 1 lease of 36 months. Repeated leases assume the same payment, upfront costs and return fees; future quotes may differ.
Buy · final net worth
$10,733
Lease · final net worth
$9,359
How the paths unfold
Values are shown at yearly milestones and the final month. Intermediate car values follow an illustrative straight line from purchase price to your net resale estimate. These are not early-exit outcomes; lease obligations continue until the end.
Buy · loan payment
$677/ month
Loan payments end after 60 months.
Lease · quoted payment
$500/ month
Upfront costs and return fees are separate.
Where the money goes
Total amounts over the same 36-month period.
| Cost breakdown | Buy | Lease |
|---|---|---|
| Upfront cash across all leases | $5,000 | $2,000 |
| Payments during comparison | $24,359 | $18,000 |
| Running costs | $0 | $0 |
| Mileage & return fees | $0 | $0 |
| Total cash paid | $29,359 | $20,000 |
| Remaining loan | $15,267 | $0 |
| Car resale value (credit) | -$26,000 | $0 |
| Total cost after sale / return | $18,626 | $20,000 |
At the finish line
Buying leaves $10,733 in car equity before a sale. Leasing leaves no car asset after return. Buy investments: $0. Lease investments: $9,359. With equal budgets, the cheaper path invests its monthly saving.
What would change the result?
Final net-worth equality, changing one assumption at a time.
Break-even monthly lease payment
$462
Lower payments favour leasing; higher payments favour buying. Search: 0–100,000 per month.
Break-even net resale value
$24,626
Higher resale values favour buying; lower values favour leasing. Search: 0–100 million.
How the wealth calculation works
Both start with $5,000. After upfront costs, the buyer invests $0 and the lessee invests $3,000.
Each month, both have the same budget: the higher of the two paths’ actual costs. Existing investments compound at the equivalent monthly rate, then the cheaper path invests its saving at month-end. Lease return fees or a new lease’s upfront costs can make leasing the more expensive path in those months.
Buy net worth = net car value + investments − loan balance. Lease net worth = investments. Loan interest paid: $4,626; principal repaid: $19,733. Negative equity and negative net worth are preserved.
At zero investment return, the net-worth advantage equals the total-cost advantage. With investment returns, they may differ. These balances cover the car decision only.
Annual breakdown & export
Yearly periods plus any shorter final period. CSV includes all assumptions and monthly calculations.
| Months | Loan left | Interest | Principal | Buy net worth | Lease net worth | Buy cash paid | Lease cash paid |
|---|---|---|---|---|---|---|---|
| 1–12 | $28,812 | $1,932 | $6,188 | $6,521 | $5,120 | $13,120 | $8,000 |
| 13–24 | $22,242 | $1,550 | $6,570 | $8,425 | $7,240 | $8,120 | $6,000 |
| 25–36 | $15,267 | $1,145 | $6,975 | $10,733 | $9,359 | $8,120 | $6,000 |
How this comparison works
Buy cost = down payment + loan payments + running costs + remaining debt − net resale value. Lease cost = upfront costs + all monthly payments + running costs + excess mileage + return fees. Loan principal is not charged twice: the remaining balance is settled from sale proceeds.
Use tax-inclusive quotes. Refundable deposits are excluded. Buying keeps the same car for the full duration. Leasing repeats identical contracts, with upfront costs at each start and mileage and return fees at each end. Driving duration must cover complete lease terms. Early termination, lease buyouts, replacement purchases and business tax deductions are excluded. Running costs can inflate; other quoted costs stay fixed. Investment returns use your after-fee, after-tax assumption. Resale value is an estimate, not a forecast. Annual kilometres and allowances apply only to leasing. Buying has no mileage limit or excess-kilometre fee; enter resale and running-cost estimates that reflect your own use. No assumptions are saved or sent. See the FCAC car financing guide for buying and leasing considerations.