Car Lease vs Buy in Retirement Calculator
Compare the total cost of leasing versus buying a car in retirement. Factor in loan payments, depreciation, maintenance, insurance, and mileage to find the most cost-effective option for your retirement budget.
Comparison Period
Buying Costs
Leasing Costs
Depreciation
Decision Clarity Score
Buying is clearly the better option for your retirement situation.
Better Option
Buy
Savings
$26,264
Break-Even Year
Year 1
Residual Value
$6,891
Net Buy Cost
$78,123
10-year net cost
Total Lease Cost
$104,387
4 lease(s)
You Save
$26,264
by buying
Car Value at End
$6,891
after 10 years
Cumulative Cost Comparison
Net buying cost vs. total leasing cost over time
Annual Cost Comparison
Year-by-year buying vs. leasing costs
Buy Cost Breakdown
Where your money goes when buying
Total
$85,013
Down Payment
8%$7,000/yr
Loan Payments
39%$32,871/yr
Insurance
19%$16,049/yr
Maintenance
10%$8,458/yr
Fuel
24%$20,635/yr
Lease Cost Breakdown
Where your money goes when leasing
Total
$104,387
Down Payments
9%$9,183/yr
Monthly Payments
53%$55,027/yr
Insurance
18%$18,342/yr
Fuel
20%$20,635/yr
Disposition Fees
1%$1,200/yr
Year-by-Year Comparison
Detailed annual and cumulative cost breakdown
| Year | Buy Annual | Lease Annual | Buy Cumulative | Lease Cumulative | Car Value | Lease - Net Buy |
|---|---|---|---|---|---|---|
| 1 | $10,274 | $8,200 | $17,274 | $10,200 | $29,750 | +$22,676 |
| 2 | $10,426 | $8,446 | $27,701 | $18,646 | $25,288 | +$16,233 |
| 3 | $10,588 | $8,699 | $38,288 | $27,345 | $21,494 | +$10,551 |
| 4 | $10,759 | $9,360 | $49,048 | $38,891 | $18,270 | +$8,114 |
| 5 | $10,941 | $9,229 | $59,989 | $48,120 | $15,530 | +$3,661 |
| 6 | $4,561 | $9,506 | $64,551 | $57,626 | $13,200 | +$6,276 |
| 7 | $4,768 | $10,191 | $69,319 | $70,206 | $11,220 | +$12,107 |
| 8 | $4,989 | $10,085 | $74,308 | $80,291 | $9,537 | +$15,520 |
| 9 | $5,226 | $10,388 | $79,534 | $90,678 | $8,107 | +$19,250 |
| 10 | $5,479 | $11,099 | $85,014 | $104,387 | $6,891 | +$26,264 |
Personalized Insights
Actionable recommendations based on your numbers
Buying Saves $26,264 Over 10 Years
After accounting for the car's residual value of $6,891, buying costs $78,123 net vs. $104,387 for leasing. Buying is the more cost-effective option for your situation.
Buying Breaks Even in Year 1
By year 1, the net cost of buying (including residual value) becomes less than the cumulative lease cost. The longer you keep the car after this point, the more buying saves you.
Low Mileage Favors Leasing
At 8,000 miles per year, you are well under typical lease mileage limits. Low-mileage retirees often benefit from leasing since they avoid excess mileage fees and don't fully utilize the long-term cost advantages of ownership.
$4,871 in Loan Interest
Your auto loan at 6.5% adds $4,871 in interest over 5 years with a $548/month payment. A larger down payment or shorter term would reduce this cost.
Car Worth $6,891 After 10 Years
At 15% annual depreciation, your $35,000 car retains $6,891 in value. This residual value offsets the total purchase cost. With leasing, you build no equity and own nothing at the end.
4 Lease Terms Over 10 Years
With 36-month lease terms, you will go through 4 separate leases. Each new lease may require a new down payment and disposition fee on the old vehicle. However, you benefit from always driving a newer, warranty-covered car.