๐ Car Lease ยท Rent ยท Installment Comparison
Compare lease, long-term rent, and installment plans side by side for monthly payment and total cost.
๐ Vehicle Info
Deposit: $10,500 ยท Residual: $14,000
๐ Comparison Result
$246
$160,747
$682
| Item | ๐ Lease | ๐ Rent | ๐ณ Installment |
|---|---|---|---|
| Monthly Payment | $246 | $160,747 | $682 |
| Initial Cost | $10,500 | $3,500 | $7,000 |
| Total Cost | $22.3K | $7.7M | $39.7K |
| Total Interest | $1,313 | $4,357 | $4,748 |
| Ownership | โ | โ | โ |
| Insurance | ๐ธ Separate | โ Included | ๐ธ Separate |
| Tax Deductible (Biz) | โ Yes | โ Yes | โ No |
๐น Total Cost Comparison
๐ก Recommendations
Business Owner
Both lease and rent are fully deductible. Lease offers lower monthly payments.
โ Lease Recommended
Convenience First
Rent includes insurance and maintenance, making it the easiest to manage.
โ Long-Term Rent Recommended
Long-Term Ownership
You own the car after completing installment payments. Most economical long-term.
โ Installment Recommended
Lowest Total Cost
With current settings, Lease has the lowest total cost at $22,313.
โ Lease ($22,313)
Car Finance Options Guide
๐ Lease
A lease lets you use a vehicle by making monthly payments to the leasing company. You can set a deposit and residual value to lower monthly payments. At the end of the term, you can return the car, buy it out, or re-lease. Business owners can deduct the full lease payment as a business expense.
๐ Long-Term Rent
Long-term rental is similar to leasing but can include insurance and maintenance in the monthly payment, making it the most hassle-free option. Great for people who want predictable costs without surprise repair bills.
๐ณ Installment (Auto Loan)
An installment plan finances the purchase price over time. Once paid off, you own the vehicle outright. Monthly payments are typically higher, but it's the most cost-effective option long-term if you plan to keep the car for many years.
Frequently Asked Questions
What's the difference between a lease and a rental?
A lease typically allows you to set a residual value to reduce payments and may offer a buyout option. A long-term rental usually includes insurance and maintenance services but may not allow you to purchase the vehicle.
Is an installment plan better if I'm not a business owner?
For individuals who can't claim tax deductions, an installment plan is often the most economical choice long-term because you build equity and own the car outright. However, if you prefer lower monthly payments or plan to switch cars frequently, a lease may be more suitable.
What is residual value?
Residual value is the estimated worth of the vehicle at the end of the lease term. Setting a higher residual value lowers monthly payments, but you'll need to pay the residual amount if you want to purchase the car at lease end. Typically set at 30โ50% of the vehicle price.
Disclaimer
The results from this calculator are for reference only. Actual rates, fees, and costs vary by financial institution. Please consult with your dealer or finance company for an exact quote.