Cash Down, Lease, or Finance a Car?

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u/deva · Joined Sep 2024

Discover the true cost of your options. Visit the dealer’s website, gather their numbers, and input them here to make a smart comparison.

Last update Oct 2024
  • Scenario 1: Real Cost of Cash Down
  • Scenario 2: Real Cost of Leasing
  • Scenario 3: Real Cost of Financing

This chart shows the real costs of each option, factoring in the opportunity cost of not investing your money. For leasing, we include the buyout cost at the end of the term for a fair comparison, which explains the noticeable increase.

# Years from Now

Try your numbers:

A =

B =

C =

D =

The amount for buying out the car, when the lease ends.

E =

F =

G =

H =
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  • Amount
    Any single amount ($).
  • Cash Flow
    Rent, insurance premium, salary, ...
  • Current Asset
    Real estate, commodity, bonds, ...
  • Installment Loan
    Mortgage, car loan, ...
  • Percentage
    Any percentage value (%).
  • Years / Months
    Any time horizon.
  • Age
    Show "Age" instead of "# Years from Now."
  • Retirement Age (requires Age)
    Enable "Investment Return After Retirement."

Time Value Assumptions

Heads Up!

If you're using Cost Basis (cb) for calculating capital gains:

Please be aware that very few countries currently use inflation-indexed cost basis. Double-check your local tax rules before publishing.

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How is Cash Value calculated?

When you buy a car outright, you pay a large lump sum (taken from your investment, typically speaking).

Decisions / Expectations

(Expressions are evaluated at Year 0 only.)

Ĩ =

Calculations

(Expressions are evaluated at every year.)

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Add Decision or Expectation
  • Buy Asset
    Buy an asset growing at its own rate.
  • Take Installment Loan
    Take a mortgage, loan, etc.
  • Invest
    Receive/Spend a lump sum.
  • Expect to Invest
    Expect to receive/spend a lump sum.
  • Expect Monthly Cash Flow
    Expect to receive/spend cash monthly.
  • Expect Yearly Cash Flow
    Expect to receive/spend cash yearly.
  • Define Variable (Numerical)
    Calculate an intermediate value.
Add Intermediate Calculation
  • Define Variable (Numerical)
    Calculate an intermediate value.
  • Define Variable (Cash Flow)
    Calculate a combined cash flow.