Leasing vs Financing a Car: Which Wins on Cost?
Financing is buying with a loan. The math against leasing comes down to how long you'll keep the car and what you do with it after.
Updated 2026-06-16 · Reviewed monthly
| Factor | Lease | Finance (Loan) |
|---|---|---|
| Term length | 24-39 months | 36-84 months |
| Effective interest | Money factor × 2400 = APR | Stated APR |
| End of term | Return / buy / new lease | Own outright |
| Equity | None | Builds with each payment |
Lease — Pros
- • Predictable, low monthly
- • Always under warranty
Cons
- • No ownership
- • Mileage caps
Finance (Loan) — Pros
- • Equity in your vehicle
- • No mileage limits
Cons
- • Higher monthly
- • Depreciation hits resale
Lease for cash flow and short-term flexibility. Finance for long-term ownership and unlimited driving.