Car Lease vs Buy Calculator: Which Option Saves More?
Cars Depreciate 60% in 5 Years. Leasing Avoids This.
A ₹12 lakh car is worth ₹4–5 lakh after 5 years. When you buy, you bear this ₹7–8 lakh depreciation. When you lease, the leasing company bears it. But leasing has its own costs — the math isn’t always in your favour.
5-Year Cost Comparison
| Buying (Loan) | Leasing | |
|---|---|---|
| Down payment | ₹2,40,000 (20%) | ₹0 |
| Monthly payment | ₹20,500 (EMI) | ₹18,000 (lease) |
| Total payments (5 yrs) | ₹14,70,000 | ₹10,80,000 |
| Insurance + maintenance | ₹3,00,000 | Often included in lease |
| Resale value | ₹4,80,000 | ₹0 (return the car) |
| Net cost | ₹12,90,000 | ₹10,80,000 |
When to Lease vs Buy
- Lease if: You want a new car every 3–4 years, drive < 15K km/year, or want predictable monthly costs
- Buy if: You keep cars 7+ years, drive a lot, want to modify the car, or want an asset
- Business owners: Leasing offers tax benefits (entire lease payment is deductible as expense)
Compare both options with your specific numbers using the car lease vs buy calculator.