LawAccord
Lease vs. Buy Calculator
Compare the financial costs of leasing versus buying an asset.
Understanding Leasing vs. Buying
Pros & Cons of Buying
Pros:
- **Ownership & Equity:** You own the asset and build equity. The resale value is yours to keep.
- **No Restrictions:** No mileage limits or restrictions on customization.
- **Lower Long-Term Cost:** Over many years, buying and holding an asset is usually cheaper than continuous leasing.
Cons:
- **Higher Upfront Cost:** Requires a significant down payment.
- **Depreciation Risk:** You bear the full risk of the asset’s depreciation.
- **Maintenance Responsibility:** You are responsible for all maintenance and repairs after the warranty period.
Pros & Cons of Leasing
Pros:
- **Lower Monthly Payments:** Lease EMIs are often lower than loan EMIs for the same asset.
- **Lower Upfront Cost:** Requires a smaller down payment or security deposit.
- **Newer Models:** Allows you to drive a new vehicle every few years and stay under warranty.
- **Tax Benefits for Businesses:** Lease payments can often be claimed as a business expense.
Cons:
- **No Ownership:** You do not own the asset and build no equity.
- **Restrictions:** There are annual mileage limits and charges for excessive wear and tear.
- **Higher Long-Term Cost:** Constantly leasing new vehicles is more expensive in the long run than buying and owning one for many years.