Does it make better sense to lease or purchase a car? That depends on some factors, such as the residual value of the car you intend to purchase, the amount of money you pay up front as a capitalized cost reduction and the cost of financing. A lease will usually be a more attractive option when compared to a vehicle purchase when measured over a comparable term. Keep in mind that with a lease, you will have to return the vehicle at the end of the lease term, whereas if you buy, you will own the vehicle and will be able to continue driving it after the term expires. Use this handy First Merchants car loan calculator to determine whether it is better financially for you to lease or purchase a car.
Lease or Purchase a Car: First Merchants Car Loan Calculator