Why trust this: VaultRubric's owner spent years in dealership sales and management. This guide explains how the deal is built from the other side of the desk, and every number is either cited or yours.
Short answer: compare what each option costs over the same months, counting the equity you'd own if you buy.
Best pick for your situation
Too close to call for these numbers (within 5%): choose on miles (leases cap them) and how long you keep cars. If you keep cars well past the loan, buying usually wins because the payments stop.
Buy: loan $32,000 at 7% for 60 months = $633.64/mo. After 36 months you've paid $3,000 + $22,811; you owe $14,152 and own a car worth about $21,000 (your estimate).
Buy net cost = $3,000 + $22,811 − ($21,000 − $14,152 equity) = $18,963. Taxes and insurance are left out because they're similar either way (some states tax lease payments instead of the price).
A best fit for the situation described, not financial advice or a buy/sell recommendation. Partner links never change a pick.
Your roadmap
Decide your miles per year; leases charge for extra miles (often 10,000–12,000/yr allowances).
Get both offers in writing on the same car: the lease's capitalized cost, money factor, residual and fees; the purchase's out-the-door price and APR.
Enter them here over the lease term.
Negotiate the lease price (capitalized cost) just like a purchase price (FTC).
Check end-of-lease costs: disposition fee, wear-and-tear, and early termination.
From the desk
On a lease, ask for the capitalized cost, money factor and residual in writing. A money factor × 2,400 is roughly the APR; if it's higher than the money factor the captive lender advertises, it may be marked up.
Over the lease term it can be, especially with manufacturer incentives. Over many years, buying and keeping the car is usually cheaper because the payments end.
Can I negotiate a lease?
Yes. The FTC says to negotiate the vehicle price (capitalized cost) on a lease just as you would on a purchase.
What is a money factor?
The lease's finance charge expressed as a small decimal; multiplying by 2,400 gives a rough APR equivalent.
Estimates, not financial advice. Taxes, insurance, PMI and fees vary by lender, county and city; confirm with your lender, dealer and state agency before acting.