05/17/2026
đ When comparing a lease to a loan, most people look at total payments. A 2024 Toyota RAV4 leased for 36 months costs $17,364. Financed over the same period, total payments hit $33,420. On paper, leasing looks like the cheaper option by nearly $16,000.
The number missing from that comparison is what you own at the end.
When you finance a car and make the final payment, you own an asset. A 2024 RAV4 loses roughly 36% of its value in the first three years, leaving approximately $19,000 of remaining value at month 36. Subtract that from your total loan payments and the true net cost of financing is around $14,420.
A lease ends with nothing. You return the car and start over, often with another lease payment due immediately.
On a true net cost basis, leasing a RAV4 for 36 months costs roughly $3,000 more than financing one, and about $7,000 more than paying cash. The lower monthly payment comes at a meaningful long-term cost.
Leasing can still make financial sense in two specific situations. The manufacturer is offering a heavily subsidized lease to move slow-selling inventory, making the implicit interest rate unusually low. Or you want a new car every two to three years and the cost difference is acceptable to you given that preference.
For most people, the best financial move is still buying a certified pre-owned version of the same vehicle. You skip the sharpest depreciation, typically the first two years, and pay significantly less for the same car.
If you drive more than 12,000 miles a year, add the over-mileage penalty to your lease cost before comparing. At $0.20 per mile, 3,000 extra miles per year adds $1,800 over a 36-month lease.
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*The content shared here is for educational and informational purposes only. It is not personalized investment, tax, legal, or financial advice. Consult a licensed professional before making decisions based on your specific situation.*