How it works
The model compares choices over time.
The calculator uses your assumptions to estimate each payment method's car-specific position over time.
Vehicle price
The selected tier sets the starting vehicle price. When you switch tiers, related assumptions such as insurance, maintenance, loan term, and lease estimate are refreshed for that tier.
Ownership timeframe
The ownership timeframe controls how many years the calculator shows in the chart and final comparison. It affects depreciation, cumulative payments, remaining loan balance, lease cost over time, and the separate investing opportunity cost estimate.
Depreciation
Car value drop per year estimates how much an owned vehicle may lose in value. The calculator uses compound depreciation, so each year is based on the previous year's value.
Cash purchase
Cash purchase assumes the vehicle is paid for upfront. The ending car position compares the depreciated vehicle value with the upfront cash paid for the car.
In the finance-vs-cash net worth comparison, the cash purchase also invests the monthly loan payment that was avoided.
Finance
Financing uses the down payment, loan term, APR, and estimated monthly payment. The net position includes depreciated vehicle value and subtracts remaining loan balance when applicable.
In the finance-vs-cash net worth comparison, the cash not used for a cash purchase is invested upfront. The loan payment is treated as normal monthly cash flow, not a withdrawal from that investment.
Lease
Leasing uses due at signing and monthly lease payments. Standard lease results show no owned vehicle asset at the end because the user does not own the car.
Selected-Year Wealth Impact
The wealth impact chart compares cash, financing, and leasing at the selected year. Each bar shows that option's net position minus the value of investing the full car price and the baseline monthly car budget instead. Less negative is financially better.
Investing instead
The investment return assumption powers both the net-position comparison and the no-car investing baseline. Summary cards continue to show net position, while the selected-year chart shows wealth impact versus investing instead.
Why results are estimates
Real outcomes can vary because of taxes, fees, insurance quotes, actual financing terms, repair costs, market returns, vehicle resale value, lease rules, and personal cash flow. Use the calculator as a thinking aid, not as advice or a guarantee.
This calculator provides estimates for educational purposes only. It is not financial, legal, tax, insurance, lending, or vehicle-buying advice.