Should you pay cash, finance, or lease your next car?
Compare actual US offers over the same number of years. See the payment today, monthly commitment, remaining loan balance and estimated cost after the car’s future value.
All starting numbers are examples. Replace them with your vehicle price and written offers; tax and fees differ by state and transaction.
Step 1 of 3Your priorities
YOUR PAYMENT COMPARISON
Your payment methods
01
Total money paid
Everything leaving your bank account during the comparison period: upfront, monthly, fees and final payments. It excludes any loan installments due after that period.
02
Estimated cost over the period
Total money paid + estimated loan balance still owed − car value retained. A returned lease leaves no car value to subtract.
Example: $35,000 paid + $8,000 loan balance − $20,000 car value = $23,000 estimated cost.
Method
Fit / 10
Upfront
Monthly
End payment
Total money paid
Loan still owed at the end
Estimated cost over the period
Yes, a loan balance still owed is included in estimated cost. It is added once because those future installments have not yet left your bank account. This is an estimated remaining balance, not a lender payoff quote.
SEE THE DIFFERENCE
Four views of the same comparison
Look at overall cost, when money leaves your account and how uncertain resale value affects ownership options.
01
Which method costs the least?
Estimated cost across the same period, including remaining finance and allowing for the car you retain.
02
Where does that cost come from?
Each bar adds up to estimated cost. For a purchase, it shows the car’s value used after trade-in and rebate, sales tax and fees, and financing interest. A returned lease shows its payments as vehicle use plus any return charges. A lease buyout includes the buyout and car value in the vehicle-use portion.
Car value lost / vehicle useLoan interestTaxes and fees
03
What if the car is worth more or less?
Ownership costs if your estimated future car value is 15% higher or lower. A returned lease has no resale adjustment; other lease charges can still change.
04
How does the money leave your account over time?
Solid lines show cumulative cash paid—not the true cost. At the end, the dotted adjustment adds any loan still owed and subtracts the car value you retain. Compare the square end markers and the labelled legend for estimated cost.
Cash starts high because you pay the full purchase price immediately. That does not make it the most expensive method: the end adjustment subtracts the car’s remaining value. Chart 01 compares estimated costs directly.
THE TIMING MATTERS
Payment journeys, side by side
Check today’s amount, the monthly commitment, any final payment and your position at the end.
Calculations and assumptions
All default figures are examples, not quotes. The tool uses the interest rate you enter to estimate monthly payments and the remaining balance; use the contract interest rate rather than APR if APR includes fees. Taxes and fees come from your own quote. Lease due at signing includes the first month, followed by term minus one later payments. Lease terms must match the comparison period to appear in the results.
Trade-in value less any payoff reduces the purchase amount; the value of the traded car is not modeled as a separate economic cost. Insurance, running costs, savings returns, early termination and differences in state tax treatment beyond your entered amount are excluded. Resale sensitivity of ±15% is illustrative, not a forecast.
How the rating works
Fit is based on your priorities, amounts you are comfortable paying and whether you want to own the car. Firm limits prevent an option from being recommended when breached. No score guarantees affordability or loan approval.
A FAIR COMPARISON
What the number means
The calculator compares the cost of using the same car for the same period. For cash or a loan, it adds money paid so far and any outstanding loan balance, then subtracts your estimated car value. If you return a lease, there is no resale value to subtract. If you buy the leased car, it adds the buyout and subtracts its estimated value.
Start with the out-the-door price
Request a written price that includes the vehicle, taxes and mandatory fees. State sales tax, registration, trade-in credits and taxes on a lease vary. The tool asks for your quoted totals instead of guessing from your ZIP code.
Compare real financing offers
Ask a bank or credit union and the dealership for the amount financed, contract rate, loan term, fees, rebates and total payments. Promotional manufacturer financing can replace a cash rebate. Enter each offer on its own terms.
Check the lease details
A lease may have a lower monthly payment and still cost more over the chosen period. Ask about mileage allowance, excess wear charges, taxes, disposition fees and the buyout price. A lease buyout may require additional tax and financing, which this simple comparison does not model.
What is excluded?
Insurance, fuel, maintenance, investment returns on cash, credit approval, early payoff or termination fees and differing tax treatment beyond what you enter are excluded. Resale is an estimate; compare more than one plausible resale value before choosing.