How it works
Net cost is everything you pay out (down payment, fees, taxes, monthly payments and any mileage charges) minus what you own at the end: the car's resale value, less anything still owed on the loan. A lease payment covers depreciation plus a money factor charge on the capitalized cost and the residual. The break-even resale value is the price the car would have to sell for at the end of the lease term for buying and leasing to cost the same.