How AutoPrisme compares lease with buy
The buy side estimates a monthly loan payment using the price, deposit, annual percentage rate and common comparison period. It adds purchase fees and then subtracts the estimated resale value still held at the end.
The lease side adds the upfront payment, every monthly payment and expected end costs. Both totals are divided by the same number of months so the averages are directly comparable.
Lease cost = upfront payment + all rentals + expected end costs.
Contract details that can change the result
- Annual mileage allowance and excess-mileage price.
- What counts as chargeable damage at return.
- Servicing, tyres, insurance or taxes included in the lease.
- Administration, acquisition and early-termination fees.
- Whether the purchase APR and fees come from a real quotation.
- A conservative resale value for the purchased vehicle.
Worked example over 48 months
The default example compares a 32,000 car bought with a 4,000 deposit and a 5.5% estimated APR against a lease with 3,000 upfront and 420 monthly payments. The purchase calculation credits an estimated 18,000 end value; the lease includes 700 of expected return costs. Change every input to match the two offers you actually received.
Frequently asked questions
Why does the calculator subtract resale value from buying?
A purchased car remains an asset at the end of the comparison period. Subtracting its estimated value avoids treating the whole purchase price as consumed during that period.
Should the lease upfront payment be included?
Yes. Include every non-refundable initial payment as well as monthly payments and realistic end-of-lease costs.
Does the cheaper option automatically mean the better option?
No. Ownership, flexibility, mileage limits, maintenance cover and the risk of damage charges can matter even when one estimated total is lower.
Is the calculated loan payment a finance offer?
No. It is a standard amortisation estimate based on the price, deposit, APR and period entered. A lender may calculate fees or payments differently.