Lease Vs Buy Analysis Excel - Auto

Use a 2-variable Data Table ( Data > What-If Analysis ) to show how different Interest Rates and Residual Values change the winner.

(Adjusted Cap Cost – Residual Value) / Term.

In most cases, buying becomes cheaper than leasing around the mark. This is because the heavy initial depreciation has slowed down, and you no longer have a monthly payment once the loan is cleared. 📉 Depreciation vs. Market Risk auto lease vs buy analysis excel

The estimated value of the car at the end of the term (usually 3 years). 2. The Lease Calculation Loop

Use =CUMPRINC() to see how much of the car you actually own at any month. 🔍 Critical Comparison Metrics 🛡️ The "Break-Even" Point Use a 2-variable Data Table ( Data >

The manufacturer takes the risk. If the car's market value crashes, you just hand it back.

(Adjusted Cap Cost + Residual Value) × Money Factor. Total Monthly: (Depreciation + Finance Fee) + Sales Tax. 3. The Buy Calculation Loop Loan Payment: Use the =PMT() function in Excel. This is because the heavy initial depreciation has

If you'd like, I can provide the for a specific car model you are looking at, or I can draft a step-by-step guide on how to set up the "Opportunity Cost" calculation.