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Lease versus finance: how drivers should compare key costs
The average new car purchase price was $49,200 in May 2026, while the average used car list price was $26,918, according to Kelley Blue Book.
For drivers buying a vehicle without paying cash, a major choice is whether to lease or finance, and the answer largely depends on personal financial goals, according to guidance from Yahoo Finance.
Yahoo Finance notes that leasing typically involves signing a long-term lease agreement that sets the contract length, monthly payment, and a mileage limit, with per-mile charges generally in the range of 10 to 25 cents if the driver exceeds the cap.
The article also outlines leasing terminology that affects total cost, including capitalized cost, sometimes called cap cost, and the amount due at signing, or DAS, which can cover the first month’s payment, taxes, registration fees, and acquisition fees.
It further highlights that the average car lease term is about three years, and that residual value, the dealership’s estimated end-of-lease worth expressed as a percentage of MSRP, is usually not negotiable.