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Leasing vs Buying Calculator

Compare the total cost of leasing a car versus buying it with a loan. See which option is cheaper over the full period.

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๐Ÿ‡ฉ๐Ÿ‡ฐ All calculations are based on Danish rules, rates, and currency (DKK). This calculator is translated for convenience but applies exclusively to Denmark.

Leasing vs Buying Calculator

One of the biggest financial decisions for Danish car owners is whether to lease or buy. Leasing offers lower monthly payments and the ability to drive a newer car, but you never build ownership. Buying means higher upfront costs and loan payments, but you own the car and can sell it later. This calculator compares the total cost of both options including residual value, so you can make an informed choice.

How the Comparison Works

The leasing cost is straightforward: down payment plus all monthly payments over the lease period. The buying cost includes the total loan repayment with interest, minus the estimated residual value of the car when the loan is paid off. In Denmark, car prices include the registration tax (registreringsafgift), which is among the highest in Europe, making the purchase price significantly higher than in neighbouring countries.

Which Option Is Right for You?

Leasing typically makes sense if you prefer driving a new car every 2-4 years, want predictable costs, and do not want to deal with selling a used car. Private leasing is most cost-effective if you drive less than 15,000 km per year or only want the car for 1-2 years. Buying is often cheaper in the long run, especially if you keep the car for many years after the loan is paid off.

Electric Cars โ€” Leasing or Buying?

If you want lower monthly costs and like driving the latest technology, leasing may be the best option for electric cars. EVs often have higher depreciation in the first years, making leasing attractive. Leasing agreements typically require both liability and comprehensive insurance. Consider your driving habits, annual mileage, and how long you plan to keep the car before making your decision.

Frequently Asked Questions

What is cheapest, leasing or buying?

If you can buy a car with cash, it is certainly cheaper than leasing. But if you need financing, interest and fees add up quickly, making leasing potentially attractive. If your needs change, you can always return the car before the 36-month period.

What are the disadvantages of leasing?

The biggest disadvantage of private leasing is that the same consumer protection rules do not apply as with a purchase. Some lessees end up committing to an agreement that turns out to be more expensive than initially assumed, which can cause financial problems.

When does it make sense to lease a car?

Leasing makes sense if you drive less than 15,000 km per year โ€” and most people do. In fact, the average annual driving distance in Denmark is only about 6,000 km. You also avoid worrying about resale value.

Is it better to buy or lease an electric car?

If you want lower monthly costs and like driving the latest technology, leasing may be the best option. If you prefer ownership and are willing to take a risk on the car's value, buying can be a better long-term investment.

Is it more expensive to insure a leased car?

No, it is generally not more expensive to insure a leased car. However, both liability and comprehensive insurance are required, while as a car owner you can choose to have only liability insurance.

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