Automotive Finance

Lease vs Buy Car Calculator

Should you finance a car purchase or lease it? Compare the true Net Cost of Ownership over time.

Buying a Car

What you can sell it for at the end of the loan term.

Leasing a Car
Comparison over 60 Months

Winner

Buying is cheaper

by ₹3,71,199

Buy Strategy

Monthly EMI₹25,202
Total Out of Pocket₹18,12,134
Net Cost (after resale)₹12,12,134

Lease Strategy

Monthly Payment₹25,000
Lease Term Cost₹9,50,000 (36 mo)
Net Cost (60 mo)₹15,83,333

The True Cost of Leasing vs. Buying

Leasing a car often provides a lower monthly payment, making it attractive. However, at the end of a lease, you own nothing. When you buy a car, your monthly payments build equity. Once the loan is paid off, the car is an asset you can sell to recoup a significant portion of your total expenses.

Intelligence Insight: From a purely financial perspective, buying a slightly used car and driving it for 10 years is almost always the cheapest way to own a vehicle. Leasing only makes sense if you can deduct it as a business expense or if having a brand new car every 3 years is a lifestyle priority you are willing to pay a premium for.