§ Calculator · Vehicle

Buy vs lease

What this is

Buy: own a depreciating asset. Lease: rent it then walk away.

At the same out-the-door price, lease usually has lower monthly cost but produces zero equity. Buy has higher monthly cost but builds resale equity. The 'right' answer depends on how long you keep cars.

·Money factor: APR ÷ 2400. Example: 6% APR = money factor 0.0025.
·Residual: what the lessor expects the car to be worth at lease end. Lower residual = higher depreciation portion = higher payment.
·Buy ahead when: you keep cars 7+ years. Lease ahead when: you flip every 3 years.

Vehicle priceDown paymentBuy loan rate

Buy term (months)Lease cap costLease residualLease term (months)Money factor

Buy · monthly

$792

Lease · monthly

$911

Buy · total cost

$33,551

Lease · total cost

$32,804

Buy equity at end

$4,312

Verdict

Wash

Total cost comparison over the lease term

Lease mileage caps (typically 20-24k km/yr) and excess-wear charges can add thousands at turn-in. Build those into the lease estimate.

Disclaimer

Educational, not financial advice. Output is generated by an AI assistant using simplified assumptions. Tax rates, contribution limits, and benefit amounts change annually; confirm with a CFP, CPA, or the relevant Canadian regulator (CRA, FSRA, OSC, IIROC) before acting.