Independent Ontario consumer resource · built on the official Fault Determination Rules · updated August 2026

Ontario · Free tool · Updated August 2026

Lease or finance — and can you actually afford it?

Lease or finance, how long to keep it, and whether it fits your income.

1 The vehicle

Make

Model

Year

Price before tax

Down payment / trade-in

Price auto-fills from typical value for that year. Change it to what you've actually been quoted.

2 How you're paying

Interest rate

Ontario new-car rates typically run 6–9%; used is higher.

Term (months)

Include 13% HST — on the purchase price when financing, on each payment when leasing

3 Driving & fuel

Kilometres a year

Fuel price

$/litre — switches to $/kWh for electric

4 Insurance & upkeep

Where you park it

Insurance per year

Auto-estimated. Override with a real quote for an exact figure.

Include maintenance & tires — estimated from vehicle type, age and distance

When to get out

Cost per month of use depending on when you get out.

Lease or finance — and how long to keep it

Which route costs less per month of actually having the car.

Where this model can be wrong

Manufacturers frequently subsidise leases — inflating the residual value or discounting the money factor to hit an advertised payment. This calculator uses an unsubsidised residual and your stated rate for both routes, so a real promotional lease can beat what you see here. If you have an actual lease quote, compare it against the financing figure above rather than against our lease estimate. Lease mileage caps and end-of-term wear charges are also not modelled.

When you’d owe more than it’s worth

The months where a write-off would leave you owing money.

Cost over time

What you'll have spent, what the vehicle is worth, and the net cost of owning it.

Depreciation

Usually the largest cost of owning a car, and the one that never sends you a bill.

What goes into the monthly figure

The payment — finance, lease or nothing if you pay cash.
HST — 13% on the purchase price when financing, on each payment when leasing.
Insurance — estimated from the vehicle and where you park it.
Fuel or charging — at your actual annual distance.
Maintenance and tires — scaled by vehicle type, age and distance.

Leasing versus financing, fairly compared

A lease almost always shows the lower payment, because you are paying for the depreciation during the term rather than for the whole vehicle. At the end you own nothing. Financing costs more each month but leaves you with an asset that still has value. The cost-over-time table above compares them on net cost, which is the honest comparison.

Step 3 of 5 · Lease or finance

Next step

Payment sorted. Now check it fits your income.

Step 4Can you afford it →← Compare two

Key takeaways

A lease payment is almost always lower — because you end up owning nothing.
There is a cheapest year to get out, and it is rarely when the loan ends.
Little money down means months where you owe more than the car is worth.

These figures are modelled from Ontario rating factors and calibrated to published averages — not quotes. See exactly how they are calculated.

Common questions

How much does a car really cost per month in Ontario?

The advertised payment is usually less than half the true cost. On a typical mainstream vehicle in the GTA expect insurance around $200 a month, fuel of $150 to $250 depending on distance, maintenance of $60 to $90, and depreciation that frequently exceeds all three combined in the early years. This calculator adds them together so the figure you see is the one that actually leaves your account.

Is leasing cheaper than financing?

Leasing almost always shows a lower payment because you are paying for the depreciation during the term plus a finance charge, not for the whole vehicle. At the end you return the car and own nothing. Financing costs more monthly but leaves you with something that still has real value. The cost-over-time table compares both on net cost rather than payment size, which is the fair comparison.

How much do electric vehicles save on fuel in Ontario?

At typical Ontario electricity prices an EV costs roughly a quarter to a third of what an equivalent petrol vehicle costs to run, which usually works out between $1,200 and $1,800 a year at average distances. Two things offset it: EVs generally cost more to insure because repairs and battery exposure are expensive, and they have depreciated faster than petrol equivalents. This calculator accounts for all three so you see the net position.

Does the price include HST?

There is a toggle. In Ontario, HST at 13% applies to the full purchase price when you buy or finance, which is why the financed amount exceeds the sticker price. On a lease it applies to each monthly payment rather than the whole vehicle value, which is part of why lease payments look lower. Switch it off to compare pre-tax figures.