Lease vs. Buy a Car: The Honest 2026 Breakdown

Lease if: you want a new car every 3 years, drive under 12,000 miles/year, and value lower monthly payments. Buy if: you drive a lot, keep cars long, want to build equity, or plan to customize.

Same $35,000 vehicle, 5 years:

• Buy: ~$42,000 total (loan + interest + maintenance) — but you own a $14k asset at the end. • Lease + lease + lease: ~$36,000 in payments — but you own nothing. • Net cost of ownership: Buying typically wins by $5–8k over 5 years if you keep the car.

1. You write off the lease as a business expense. 2. You don't want to deal with selling/trading. 3. You'd otherwise buy a luxury car you can't comfortably afford. 4. Manufacturer subvented leases (factory discounts on residuals) can beat buying at certain trim levels.

When your lease ends, you have an option to buy the car at the predetermined residual value. If the residual is below current market value (common in 2022–2024 leases), buying out and immediately selling can net $2k–$8k.