Calculate whether to buy or lease a car

Enter the details of the purchase and lease options to help decide if buying or leasing a car is right for you.

When buying a car there can be many decisions to make including: color, safety options, rebates, and whether to lease or buy. We can help you with one of those decisions — consider using our buy vs lease calculator to determine whether you'd prefer to buy or lease a vehicle.

Buy vs. lease

Buying - What are the details of the car you would like to buy?

All fields are required. If something doesn't apply, place a 0 in the field.

Leasing - What are the details of the car you would like to lease?

 

Results

Buying

Downpayment
$1000
Monthly payments for first 36 months*
$10636.189210531728
Trade in on purchase
$5000
Balance of loan after 36 months
$3502.5623255996128576099925849
Total cost after 36 months
$20138.751536131340857609992585
Value of car at end of 36 months**
($13372.613696711132386599661392)
Net cost to purchase after 36 months
$6766.137839420208471010331193
The average net cost to purchase a car in 36 months would be $187.94827331722801308362031092 per month.
Net cost to purchase after 48 months
$8087
The average net cost to purchase a car in 48 months would be $168.47110774543914080758219685 per month.

Leasing

Downpayment
$3000
Sales tax
$232.500000
Monthly payments for 36 months
$7200.00
Total cost to lease after 36 months
$10432.500000
The average net cost to purchase a car for 36 months would be $289.79166666666666666666666667 per month.
*Sales tax of $1550.000000 is included in the financing.
**The first year's depreciation is 20% on the new car and 10% on the used car.
Subsequent years were figured at 10% for both new and used.
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Calculator definitions

Purchase price – The vehicle sales price

Down payment – Money applied upfront towards the vehicle purchase price

Rebate – A manufacturer’s discount (or rebate) for qualified buyers

Trade in value – The amount the dealer pays for your trade in vehicle and is applied to the purchase price of your new vehicle

Loan term in months – The term for your auto loan, which is typically 24, 36, 48, 60, 72 or 84 months

Interest rate – The annual financing interest rate for your auto loan

Sales tax rate – The percentage sales tax to be charged per your zip code that is applied to the sales price

Sales tax charged on full vehicle price – Some states apply the trade in as a down payment, but the taxable sales price is still the full price of the vehicle

Sales tax charged on price of the vehicle minus the value of the trade – Some states deduct the value of the trade in from the sales price

Vehicle age in years – The age of the vehicle you are purchasing

Down payment (leasing) – Money applied upfront that can help reduce your monthly lease payment

Lease term in months - The term for your auto lease, which is typically 24, 36 or 48 months

Lease payment – The total monthly payment paid to the dealership to “rent” the vehicle

Neither State Farm® nor its agents provide tax or legal advice. This calculator is for illustrative and educational purposes only. Its accuracy and applicability to your circumstances is not guaranteed. Please consult your own adviser regarding your particular circumstances.

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