FAQ: Lease vs Buy Calculator
1. What is the difference between leasing and buying?
Leasing is like renting: lower monthly payments but no ownership. Buying means higher payments but you own the car.
2. How does the calculator work?
It compares monthly and total costs for lease (depreciation + fees) vs buy (loan payments + fees).
3. What is money factor?
It's the lease interest rate. Convert APR to money factor by dividing by 2400 (e.g., 4.8% APR = 0.002).
4. What is residual value?
The car's estimated value at lease end, usually 40-60% of MSRP. Higher residual means lower lease payments.
5. Does this include taxes?
Yes, sales tax is applied to monthly lease payments or full buy price, based on USA norms.
6. Which is better: lease or buy?
Lease for lower payments and new cars; buy for long-term ownership and no mileage limits.
7. Is my data private?
Yes, all calculations are done in your browser—no data is stored or sent.