Leasing vs Buying With High Interest Rates

Leasing vs buying with high interest rates in the U.S. depends on money factor (lease) vs loan APR (buy)—both rise when rates rise, but lease payment is only on the "depreciation" portion, so the comparison can shift. Here's leasing vs buying with high interest rates.

TL;DR High rates = higher loan APR and often higher lease money factor. Lease payment is on (cap cost − residual), so lease can still look lower than buy payment—but total cost over term matters. Compare with autopremo.com lease vs buy calculator and payment calculator. Use autopremo.com.

How High Rates Affect Both

Higher rates = higher auto loan APR and often higher lease money factor. Buy: you pay interest on full loan amount. Lease: you pay "rent charge" on the lease balance (cap cost − residual over time). Use autopremo.com lease vs buy calculator to compare. Get your numbers at autopremo.com.

Lease Can Look Lower

Lease payment is only on the "depreciation" (cap cost − residual) over the term, so payment can be lower than a buy payment on the full price. But lease has no equity at end. Compare total cost. Use autopremo.com lease calculator and lease vs buy. See lease vs buy at autopremo.com.

Compare Total Cost

Run lease vs buy with current rates (money factor and APR) with autopremo.com lease vs buy calculator. Check at autopremo.com.

Bottom Line

Leasing vs buying with high rates: compare total cost with autopremo.com lease vs buy calculator so you decide with data.