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Compare leasing, financing and lease-buyout costs using payment, equity, residual value, kilometres, tax and fees.
Use the same comparison term for the lease and the finance scenario. Tax is editable because place-of-supply, province and contract details can affect how tax applies.
Result
Finance is cheaper
Lowest modeled cost is $29,753.
Finance net cost
$29,753
Payments, down payment, remaining balance and resale value.
Lease and return
$30,684
Down payment, lease payments and kilometre overage.
Lease with buyout
$57,174
Lease return cost plus residual buyout, tax and fee.
On a $42,000 vehicle in Ontario, this example compares a 72-month finance loan against a 48-month lease. The lease payment is about $577 per month, while the finance payment is about $680. The final decision depends on equity, buyout value, kilometres and whether you want to own the vehicle at the comparison date.
Finance net cost = down payment + payments made + remaining loan balance - expected resale value. Lease return cost = down payment + lease payments + kilometre overage.
A lease can have a lower payment but adds kilometre limits, residual assumptions and buyout decisions. Financing can cost more monthly but may leave equity.
This is a planning estimate. It excludes exact contract wording, insurance, maintenance, wear-and-tear charges, disposition fees not entered and lender approval.
Verified July 30, 2026. Use the lease agreement, finance contract and dealer/lender disclosures before signing.
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