Lease vs. buy.
Buy-and-hold wins on net cost over the term — projected resale equity outweighs the lease payment savings.
Lease
- Monthly (with tax)
- $2,877
- Due at signing
- $8,772
- Total over term
- $109,865
- Equity at end
- $0
- Net cost
- $109,865
Buy & hold
- Monthly (60-mo loan, with tax)
- $3,560
- Due at signing
- $8,560
- Paid over term
- $133,148
- Projected resale
- $117,250
- Loan balance at end
- $75,081
- Equity at end
- +$42,169
- Net cost
- $90,980
Delta: +$18,885 (lease costs more over the term)
How the math works
The lease side uses the standard captive-lender formula: monthly = (cap cost − residual) ÷ term + (cap cost + residual) × money factor. The model adds tax to the monthly, the acquisition fee at signing, and any excess-mileage charge if your annual mileage exceeds the lease cap.
The buy side runs a 60-month amortized loan, then projects resale value at the lease term end using the brand’s seeded depreciation curve (Bentley, Ferrari, Porsche, Rolls-Royce) or a generic default for other marques. Equity at end is projected resale minus remaining loan balance — that’s the figure that usually decides whether buying wins.
Net cost is the figure to compare across paths. If the two paths land within 2% of each other on net cost, pick on flexibility and equity preference, not on dollars.
Frequently asked questions
Should I lease or buy a luxury car?
The default answer in the luxury segment is more nuanced than for mainstream vehicles. Leasing makes sense when residual values are strong and the driver expects to swap cars regularly. Buying makes sense for collector-grade or appreciating models, for buyers planning long ownership, and for buyers who exceed standard mileage caps.
Why do luxury leases feel expensive?
Two reasons. First, the money factor (lease interest rate equivalent) is often higher on luxury vehicles than the comparable purchase APR. Second, residual values on certain marques and models are weaker than the headline number suggests, which raises the depreciation portion of the lease payment.
What about Putnam Leasing and other luxury-specialty lessors?
Specialty lessors like Putnam offer single-pay, mileage-flexible, and exotic-friendly lease structures that mainstream captive lenders do not. They typically run higher money factors but unlock cars and terms that captives will not write. Worth quoting alongside the captive offer.