Lease vs Buy Calculator
Deciding whether to lease or finance your next vehicle is a significant financial choice that depends on your driving habits, budget, and long-term ownership goals. Leasing typically offers lower monthly payments and the convenience of driving a new vehicle every few years, but it comes with mileage restrictions and no equity at the end of the term. Financing, on the other hand, leads to full ownership and builds equity in an asset, though it often requires a higher monthly commitment. Our lease vs buy calculator provides a comprehensive side-by-side comparison of these two paths, factoring in Canadian interest rates, residual values, and down payments. Use this tool to visualize the total cost of ownership over your chosen term and determine which option provides the best value for your specific situation.
Comparison Data
Financing (Buy)
$958/mo
Leasing
$633/mo
Visual Comparison
The Verdict
Leasing offers lower monthly payments and the ability to drive a new car every few years. However, financing (buying) builds equity—at the end of the term, you own an asset worth thousands, whereas a lease leaves you with nothing.
Check Your AffordabilityFrequently Asked Questions
What happens at the end of a car lease in Canada?
At the end of your lease, you typically have three options: return the vehicle to the dealership (and potentially pay for excess wear or mileage), trade it in for a new lease or purchase, or buy the vehicle outright for the predetermined residual value stated in your contract.
Is it better to lease or buy if I drive a lot of kilometers?
If you drive more than 20,000 to 24,000 km per year, financing (buying) is usually the better option. Most leases have strict mileage caps, and exceeding them can result in costly penalties (often 10-15 cents per extra kilometer) that can quickly negate the benefit of lower monthly payments.