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Lease vs buy a car: which is better for your money?

Updated June 2026 8 min read

Quick verdict

Lease if you want predictable payments, a newer car every few years and your mileage is stable. Buy if you keep cars for longer, drive high mileage or want an asset you can sell. Leasing can be attractive monthly, but buying often works better over a longer ownership period.

Option A

Lease

Personal Contract Hire is a lease where you pay an initial rental and fixed monthly payments, then return the car at the end.

Option B

Buy

Buying means paying cash or using finance so you own the car, can keep it long term and can sell it when you choose.

Side-by-side comparison

Leasing is a long-term rental: you pay to use the car and return it at the end. Buying means you take the depreciation risk but also keep any remaining value. There is no universal winner; the right choice depends on mileage, ownership length and how much you value predictable monthly costs.

Upfront cost

Lease

Lower initial rentalBetter

Buy

Higher deposit or full price

Monthly cost

Lease

Fixed and predictableBetter

Buy

Finance plus maintenance

Ownership

Lease

No, you return the car

Buy

Yes, once paid forBetter

Mileage limits

Lease

Usually apply

Buy

No lease limitBetter

Depreciation risk

Lease

Leasing company takes itBetter

Buy

You take it

Sell any time

Lease

Usually difficult

Buy

YesBetter

Best for

Lease

Regular car changes

Buy

Longer ownership

Pros and cons

Lease pros and cons

Pros

  • ✓Predictable monthly payments
  • ✓Lower upfront cost than buying new
  • ✓No need to sell the car at the end
  • ✓Often keeps you in a newer car under warranty

Cons

  • -You never own the car
  • -Mileage limits and damage charges can apply
  • -Early exit can be expensive
  • -Long-term cost can be poor if you always lease

Buy pros and cons

Pros

  • ✓You own an asset with resale value
  • ✓No lease mileage cap
  • ✓You can keep the car long term
  • ✓You can sell, modify or use the car as you choose

Cons

  • -Higher upfront cost
  • -Depreciation is your risk
  • -Older cars may need more maintenance
  • -Selling or part-exchanging takes effort

Cost examples

New car every 3 years

Leasing can cost less than buying new and selling after three years because the depreciation risk is priced into a fixed payment.

Likely fit
Lease

Keep the car for 8 years

Buying becomes stronger when you keep the car after finance ends and avoid years of repeat lease payments.

Likely fit
Buy

High mileage driver

Drivers doing well above the lease allowance should be careful, because excess mileage charges can remove the monthly saving.

Likely fit
Buy

When to choose Lease

  • ›You want predictable payments
  • ›You change cars every two to four years
  • ›Your mileage is predictable
  • ›You do not want resale hassle
  • ›You are comfortable returning the car at the end

When to choose Buy

  • ›You keep cars longer
  • ›You drive high mileage
  • ›You want ownership flexibility
  • ›You are buying used
  • ›You want to avoid hand-back inspections

Calculator

Calculate your own figures

Use the calculator below for a personal estimate, or open the full tool for the complete calculator page.

Inputs

Change the figures to compare estimated costs.

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FAQs

Does this include excess mileage fees?

No. Add likely fees manually when comparing lease offers.

Can this compare finance?

This stub is for lease versus buying. PCP, HP and cash finance stubs are separate.

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