Define Your Driving Profile
1 hourDocument annual mileage, ownership timeline, desire for latest features, and tolerance for mileage overage fees.
Field context
This workflow is part of 2 niche fields
Free step-by-step car lease vs buy for new car shoppers. Plan car lease vs buy with calculators and checklists covering define your driving profile, compare.
Document annual mileage, ownership timeline, desire for latest features, and tolerance for mileage overage fees.
Calculate lease payment (money factor, residual) vs loan payment for the same vehicle. Include down payment and acquisition fees.
Compare 3-year lease total vs 3-year buy (with resale value) vs 6-year buy-and-hold scenarios including insurance and maintenance.
Choose based on total cost analysis, not monthly payment alone. Negotiate capitalized cost (lease) or purchase price (buy) identically.
Calculate lease payment from cap cost, residual, and money factor. · Compare 3-year total lease cost vs buy-and-sell scenario.
Calculate loan payment for same vehicle and term.
Estimate resale value if buying and selling after 3 years.
Verify chosen option fits overall vehicle budget.
Sample $35,000 vehicle comparison over 36 months.
| Factor | Lease | Buy (3 yr) | Buy (keep 8 yr) |
|---|---|---|---|
| Monthly payment | $420 | $580 | $580 (5 yr loan) |
| Total 3-yr cost | $18,500 | $22,000 - $18K resale = $4K | N/A |
| Mileage limit | 36K miles | Unlimited | Unlimited |
| End of term | Return or buyout | Own or sell | Own outright |
Dealers extend loan terms to hit target payments — a $400/mo lease vs $400/mo 72-month loan are vastly different total costs.
Keeping a reliable car 8-10 years after paying off the loan gives you 3-5 years of payment-free driving — lowest lifetime cost.
The lease cap cost should equal the purchase price you'd negotiate — never accept MSRP as starting point for either.