First Cars

Lease vs Finance Comparison

Compare leasing and financing side-by-side to make the best decision for your situation

Vehicle Details

$5,000$150,000
$0$17,500
24 months84 months

Financing Options

0.00%20.00%

Typical: 6-8% for new cars

$0$50,000

Leasing Options

0.00%15.00%

Typical: 3-6% for leases

$7,000$24,500

30% of price

10,000 km40,000 km

💰 Financing (Loan)

Monthly Payment

$686

for 60 months

Total Cost$46,148
Total Interest$6,098
Loan Amount$35,050

You Own It: After 60 months, the car is yours!

🚗 Leasing

Monthly Payment

$464

for 60 months

Payment Breakdown
Depreciation$333
Finance Charge$77
Subtotal$410
Tax$53
Total$464
Total Cost$32,812
Total Depreciation$20,000
Residual Value$10,500

Return or Buy: Option to purchase for $10,500 at end

💡 Comparison Summary

Monthly Payment Difference:

Loan

$686

vs

Lease

$464

Leasing saves $222/month

Financing Advantages:

  • ✓ You own the car after 60 months
  • ✓ No mileage restrictions
  • ✓ Can modify or customize
  • ✓ Build equity in the vehicle

Leasing Advantages:

  • ✓ Lower monthly payments
  • ✓ Drive new car every few years
  • ✓ Always under warranty
  • ✓ No resale hassle

5-Year Total Cost Outlook:

Financing: You own a 5-year-old car$46,148
Leasing: You return the car or buy for residual$32,812

* After 60 months, if you financed, your car may be worth ~$10,500

Still Not Sure? Here's a Simple Guide

🎯

Your Priority

Lease if: Low monthly payment matters most

Finance if: Long-term value and ownership matters

🚗

Your Driving

Lease if: You drive <20,000 km/year

Finance if: You drive >20,000 km/year

Your Timeline

Lease if: You want a new car every 3-4 years

Finance if: You keep cars for 5+ years

💡 Pro Tip: In Canada, most people who lease do so for the lower monthly payments, while those who finance value ownership and no mileage limits.