Money tools
Lease or buy a car?
Compare what the same car costs over the same period if you lease it or buy it with a loan.
How this is worked out
Lease payment = (price − down payment − end value) ÷ months, plus a finance charge worked out from the interest rate (money factor = rate ÷ 2400). In Canada and the US, tax is added to each monthly payment.
Buying assumes a loan over the same term at the same rate. At the end you own the car, so its end value is taken off the cost.
Kilometre overage, wear-and-tear charges and registration fees are not included.