Calculate Loan or Lease
Use this calculator to determine whether you should lease your next vehicle or take out a loan.
Please fix these errors:
Interpretation:
The total cost of a #DurOfLease#-month lease at a rate of #LeaseRate#% would be #TotalLeasePmt#."
>
Since the amount you pay under a lease agreement is greater than the amount
under a loan, it may be optimal to enter into a loan agreement.
Regardless of which type of financing happens to be better for you, it is best
always to aim for minimizing the total amount of interest you will have to pay.
Note that the larger your down payment, the less interest you will be charged
in the long run on either a lease or a loan. (You can see this by re-entering a
higher down payment into the calculator.) Some leases don't require a down
payment, but if you do put one down, your monthly lease payments will be less.
Be sure to consider how much you might save in interest by taking a few extra
months or a year to save more for a down payment.
Additionally, should you currently own a vehicle, the total cost of a loan or lease on a new vehicle depends on the value of the vehicle you are trading in. It is therefore important to make sure your vehicle is properly valued. Contact your local car dealership for average prices on the make and model of your vehicle. Remember that specifics such as mileage and the general condition of your vehicle will determine its value. Also, you my want to consider how, in this case, the depreciation of your vehicle increases with the passage of time.
The total cost of a #DurOfLease#-month lease at a rate of #LeaseRate#% would be #TotalLeasePmt#."
>
Since the amount you pay under a loan agreement is greater than the amount
under a lease, it is optimal to enter a lease.
Regardless of which type financing happens to be better for you, it is best
always to aim for minimizing the total amount of interest you will have to pay.
Note that the larger your down payment, the less interest you will be charged
in the long run on either a lease or a loan. (You can see this by re-entering a
higher down payment into the calculator.) Some leases don't require a down
payment, but if you do put one down, your monthly lease payments will be less.
Be sure to consider how much you might save in interest by taking a few extra
months or a year to save more for a down payment.
Additionally, should you currently own a vehicle, the total cost of a loan or lease on a new vehicle depends on the value of the vehicle you are trading in. It is important to make sure your vehicle is properly valued. Contact your local car dealership for average prices on the make and model of your vehicle. Remember that specifics such as mileage and the general condition of your vehicle will determine its value. Also, you my want to consider how, in this case, the depreciation of your vehicle increases with the passage of time.
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