Auto Loan vs Lease (Same Car Class)
An **auto loan** builds equity (subject to depreciation). A **lease** rents depreciation for a term—lower payment if you swap cars every few years and stay within mileage caps.
Step by step
1. Align mileage
High miles favor buying; low miles may favor leasing.
2. Compare 36-month outlay
Down + payments + insurance; add resale for buyers.
3. End-of-term options
Lease return fees vs selling a financed car.
Loan vs lease
See also full lease-vs-buy guide for ownership horizon beyond 36 months.
- Auto loan: Equity; depreciation risk; sell anytime.
- Lease: Lower payment; mileage caps; no equity.
Use our calculators
Common mistakes
- Leasing without knowing mileage needs
FAQ
Is leasing cheaper per month?
Often yes—for the same car class—because you are not paying full principal.