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Compare modelled costs of buying with an amortising loan or leasing over 3 and 5 years.
Restoring your saved car comparison inputs…
Fuel and insurance apply to both options.
Three-year total cost: buying £23,835, leasing £21,150. Leasing has the lower displayed modelled cost. Five-year total cost: buying £35,371, leasing £35,850. Buying has the lower displayed modelled cost.
Editable sample active. Change any input to model your quotes.
Leasing has the lower displayed modelled cost
Buying has the lower displayed modelled cost
Net modelled costs include estimated resale value for buying. A lower estimate is not a recommendation or an affordability assessment.
Share links include car-price, finance, running-cost and mileage assumptions in an unencrypted URL.
Net cost at both advertised decision horizons (£).
Three- and five-year totals — modelled amounts rounded to the nearest pound (£)
| Cost item | Buy | Lease |
|---|---|---|
| 3-year net cost | £23,835 | £21,150 |
| 5-year net cost | £35,371 | £35,850 |
Includes deposit, payments, end loan balance, running costs and resale credit (£). Negative resale is a credit.
Three-year breakdown — modelled amounts rounded to the nearest pound (£)
| Cost item | Buy | Lease |
|---|---|---|
| Deposit | £5,000 | £0 |
| Loan instalments | £21,137 | £12,600 |
| Lease initial payment | £0 | £0 |
| Lease renewal upfront payments | £0 | £0 |
| Loan balance at end | £6,822 | £0 |
| Running costs | £9,300 | £8,550 |
| Estimated resale value credit | −£18,424 | £0 |
| Net total | £23,835 | £21,150 |
Includes resale and loan balance credits for buying plus lease upfront payments at contract starts (£).
Annual cumulative costs, rounded to the nearest pound (£)
| Year | Buy | Lease |
|---|---|---|
| Year 1 | £8,945 | £7,050 |
| Year 2 | £16,863 | £14,100 |
| Year 3 · 3-year comparison | £23,835 | £21,150 |
| Year 4 | £29,922 | £28,500 |
| Year 5 · 5-year comparison | £35,371 | £35,850 |
Five-year breakdown — modelled amounts rounded to the nearest pound (£)
| Cost item | Buy | Lease |
|---|---|---|
| Deposit | £5,000 | £0 |
| Loan instalments | £28,182 | £21,600 |
| Lease initial payment | £0 | £0 |
| Lease renewal upfront payments | £0 | £0 |
| Loan balance at end | £0 | £0 |
| Running costs | £15,500 | £14,250 |
| Estimated resale value credit | −£13,311 | £0 |
| Net total | £35,371 | £35,850 |
One option uses a fixed-rate amortising loan; the other follows the initial lease quote and an immediate renewal at the entered terms.
The editable inputs compare an amortising loan with the initial lease quote and an immediate renewal at the entered terms. They also include upfront and renewal fees, annual fuel, insurance, vehicle tax and maintenance costs, plus a depreciation assumption. Every amount and assumption can be changed.
The purchase-loan interest input is an annual rate divided by 12 for monthly amortisation. Lender fees and representative APR calculations are not modelled.
The estimate assumes each renewal begins immediately after the initial lease term. Depreciation uses your annual rate assumption, not a quoted resale value. It does not model PCP balloon payments, mileage or condition charges, early termination, unentered fees, provider-bundled costs or contract-specific terms. Vehicle tax varies by registration date, emissions, list price and vehicle type; confirm which party pays it under the lease contract.
A valid shared link takes precedence over saved inputs; otherwise, saved inputs are used only when functional storage consent is enabled, followed by the editable sample. Shared links contain the calculator inputs in URL-safe Base64, which is not encryption.
Use actual lender and lease quotes and compare the full amount payable. This calculator is not a finance offer, affordability assessment or personal recommendation.
GOV.UK and FCA pages cover vehicle tax and consumer-finance rules. The FCA’s consumer-services page also identifies MoneyHelper as a partner for free financial guidance from the Money and Pensions Service. The calculator uses simplified cost assumptions and is not a finance offer or financial advice.