Which way of having a car works out best?
Before you decide, run each of the scenarios: paying cash, financing, leasing or no car at all.
My own thoughts and numbers on the subject
How this calculator works
This calculator compares four ways of having a car, or not having one: paying cash, financing, leasing, or getting around by public transport, taxis and hire cars. You pick at least two and see them side by side with your own figures.
All four start from the same money and are measured the same way: what you pay, what the car loses in value when you sell it, what it costs to run (insurance, tax, maintenance and fuel) and what that money would have earned if you had left it invested. The result is the real cost of each option over the whole period and per month, with the full breakdown.
There is no answer that works for everyone: it changes with the price, the monthly payment you are offered, how much you use the car and what your money earns. That is why the calculator does not name a fixed winner.
What it doesn't do
- It does not account for tax, deductions or VAT for the self-employed.
- It does not calculate the APR of the finance: it compares what the car costs you, not the interest you are charged.
- It does not estimate what the car will be worth at the end: you enter that figure.
- It stores nothing: the calculation runs in your browser.
More tools for your money
Is it time to raise your income?
Run my numbers →Putting money into a property deal? Check this first
Get my steps →I've been scammed: what do I do now?
Get my steps →Are automatic currency orders worth it?
Run my numbers →Missing one?
Tell me which money question you would like to see answered and it goes on the list.
Write to me →