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How Much Car Can I Afford? The Complete Guide to Setting Your Budget
Use the 20/4/10 rule and real cost-of-ownership data to figure out the car budget that fits your life. Includes financing traps to avoid and dealer tactics to watch for.
Lease vs Buy Analyzer
Side-by-side comparison with mileage penalty modeling, equity building, and end-of-term options. Shows breakeven scenario.
Lease vs Buy Analyzer
Lease or buy -- which one actually makes more sense for you?
$
$15,000$250,000
$
$100$1,500
Monthly payment from the dealer's lease offer
$
$5,000$40,000
Be honest -- mileage penalties are expensive
Buying saves you $6,141 over 6 years -- and you actually own something at the end.
Here's the thing
Buying builds $14,440 in equity that you keep. After month 12, buying starts winning financially. If you plan to keep the car longer than 5 years, the savings grow even more since you'll have no monthly payment.
Lease total cost (6 years)
$34,888
$485/month effective
Buy total cost (6 years)
$28,747
$399/month effective
Equity at end (buying)
$14,440
What your car is worth when you sell or trade in
Equity at end (leasing)
$0
You return the car and start over
Total interest paid (buying)
$5,187
Number of lease cycles
2 leases
36-month terms over 6 years
Buying breakeven point
Month 12
When buying becomes cheaper than leasing
The Money Friend
Buying saves you $6,141 over 6 years -- and you actually own something at the end.
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This calculator provides estimates for informational purposes only and does not constitute financial advice. Actual costs may vary based on your creditworthiness, location, and lender. Consult a licensed financial advisor or mortgage professional before making financial decisions.
Interest rates, payments, and loan terms shown are examples for illustration purposes only and do not represent an offer to lend, a commitment to make a loan, or a guarantee of any specific rate or term. Actual rates and terms are determined by lenders based on your individual credit profile and may differ from examples shown.
Past performance and historical data do not guarantee future results. Equal Housing Opportunity.
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