Vehicle
Vehicle price$38,000
Depreciation / yr15%
Buying
Down payment$5,000
Loan rate (APR)6.5%
Loan term60 months
Leasing
Monthly lease payment$450
Lease down (cap cost red.)$2,500
Lease term36 months
Over 5 years, it's cheaper to
—
—
Buy
5-year true cost
—
incl. remaining value
Lease
5-year true cost
—
payments + down, no equity
Cumulative cost over 5 years
Buy (net of equity)
Lease
Cost breakdown comparison
ItemBuyLease
Upfront cash——
Monthly payments——
Total paid in——
Car value at yr 5—$0
Net cost——