Loan vs lease vs cash

Full ownership cost comparison across three ways to buy a car

Parameters

Car price, $

Down payment, $

Loan rate, % p.a.

Lease rate, % p.a.

Term, years

	Loan	Lease	Cash
per month	$513	$478	—
Total cost	$24,475	$23,226	$20,000
Overpayment	+$4,475	+$3,226	$0

Annuity loan and finance lease share the same math; differences are in requirements (comprehensive insurance, fees) and ownership. Cash: no overpayment but frozen capital. Not included: insurance (~5%/year), bank fees, VAT on leases for companies.