10-Year Cost: $63K Buy vs $84K Lease vs $24K Transit
The Question Nobody Answers Honestly
When people debate buying vs. leasing vs. public transit, they usually compare monthly payments. That’s the wrong number. The right number is total cost of mobility per year — including everything you’d rather not think about.
What Car Ownership Really Costs
A $35,000 car doesn’t cost $35,000. Here’s the full 10-year math, side by side:
| Cost category | Buy | Lease (3-yr cycles) | Transit + occasional rideshare |
|---|---|---|---|
| Purchase / lease payments | $35,000 | $54,000 ($450/mo × 120 mo) | $0 |
| Insurance | $15,000 | $15,000 | $0 |
| Fuel / gas | $18,000 | $18,000 | $0 |
| Maintenance + repairs | $9,000 | $3,000 (warranty covers most) | $0 |
| Parking + tolls | $6,000 | $6,000 | $0 |
| Resale value at year 10 | −$8,000 | $0 (you never own it) | $0 |
| Transit pass + rideshare | $0 | $0 | $24,000 ($200/mo) |
| 10-year total | $75,000 | $96,000 | $24,000 |
That’s $625/month for the buyer, $800/month for the leaser, $200/month for the transit user. Over 10 years, the gap between transit and lease is $72,000 — invested at 7% real return, that grows to over $90,000.
The Transit Alternative
A monthly transit pass at $100/month costs $6,000 over 5 years. Add occasional rideshares and car rentals for trips transit can’t cover — maybe another $3,000. Total: $9,000. That’s $150/month.
The difference? $35,000 over five years. Invested at 7%, that gap grows to over $40,000.
When Each Option Wins
- Buy if you drive 15,000+ miles/year, live in a car-dependent area, and plan to keep the car 7+ years.
- Lease if you need a car but hate maintenance surprises and want a new vehicle every 3 years.
- Transit if you live in a city with decent coverage and can tolerate longer commute times.
The Hidden Variable: Your Time
Transit saves money but costs time. If your commute adds 45 minutes each way, that’s 375 hours per year. At a $30/hour effective rate, that “free” transit costs you $11,250 in time.
This is why there’s no universal answer — only your answer.
Where each path wins
- Buy wins: 8+ year ownership horizon, available financing at sub-7% rate, mileage above 12K/year, geography where transit isn’t viable.
- Lease wins: business write-off available, you genuinely want a new car every 3 years, low expected mileage (under 10K/year), don’t want to deal with end-of-life maintenance.
- Transit wins: dense urban geography where 80%+ of trips are reachable, minimal kid/family logistics, time-productive commutes (audiobooks, work, reading).
Open the Buy vs Lease vs Transit Calculator → and run your specific numbers. The 10-year cumulative cost is the deciding output.