What are you seeing here?
This tool compares your net worth if you buy a car versus if you rent/lease and invest the money you free up. Cars usually depreciate, while invested money can grow.
How this comparison works
- In the buy scenario, your wealth is car value (after depreciation) minus remaining debt plus any extra investments.
- In the rent scenario, your wealth is the value of the invested down payment and the monthly surplus after paying rent.
- Cars usually lose value every year, while well-diversified investments can grow over time.
- This is a simplified model; real life includes many extra variables (repairs, insurance differences, taxes, etc.).
Net worth: buy the car
-
Net worth: rent + invest
-
Difference (rent - buy)
-
Estimated annual depreciation
-
