Example$45,000 vehicle · 6.49% · 72-month finance · Ontario HST - switch mode to compare lease or cash
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The Canadian vehicle calculator compares leasing, financing, and buying with cash for any new or used car. It factors in the 20/4/10 affordability rule, provincial sales tax (GST/HST/PST), and typical depreciation so you see the full cost of ownership - not just the sticker or the monthly payment the dealer quotes.
Monthly lease payments are calculated as (capitalized cost − residual) ÷ term + money-factor interest on the average capital. Finance payments use standard loan amortization. Cash purchase adds the opportunity cost of the lump sum at your chosen investment rate. Sales tax is applied at the province-specific combined GST+PST (or HST) rate on the full price (buy/finance) or on each monthly payment (lease in most provinces).
Canadian new vehicles depreciate 15–25% in the first year and 50–60% over 5 years. Financing a new car for 84 months usually means you'll be underwater (owe more than the car is worth) for 3–4 years.
Leasing usually means lower monthly payments but no ownership at the end unless you buy out. Financing spreads purchase price plus interest over time until you own the vehicle. Paying cash avoids interest but ties up capital.
The calculator can apply GST/HST/PST rules depending on your province and inputs. Verify with your dealer for exact fees and incentives.
Optional AI-assisted depreciation estimates can help compare total cost of ownership. Figures are estimates only.
Long-form explainers that pair with this calculator.