Is leasing a car cheaper than buying?

It depends on how fast the car loses value and how long you keep it. Leasing often costs less in a new car's first few years, when it loses value fastest. Buying and keeping a car longer usually costs less overall.

What does 'the real cost' mean here?

Everything you pay over the period, less what the car is worth at the end if you bought it. A leased car goes back, so there's nothing to take off.

Money

Lease a car or buy one?

The real cost of buying a car with a loan against leasing one, after what the car is worth when you're done.

Self-assessment tool. The figures come from your own answers. It isn't advice, and you're responsible for what you file or claim. heypenny.ie is a trading name of Kinch Press. Read the disclaimer.

Common questions

Is leasing a car cheaper than buying?: It depends on how fast the car loses value and how long you keep it. Leasing often costs less in a new car's first few years, when it loses value fastest. Buying and keeping a car longer usually costs less overall.
What does 'the real cost' mean here?: Everything you pay over the period, less what the car is worth at the end if you bought it. A leased car goes back, so there's nothing to take off.

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