Canada · Alberta defaults · 5-year view
Lease vs Buy vs Finance: 5-Year True Cost
The monthly payment is only part of the cost. This adds up what each option really costs you over five years: tax, interest, fees, kilometre overage, what the vehicle is worth at the end, and what your cash could have earned instead.
How we count "true cost"
True cost = everything you pay over 5 years − what the vehicle is worth at the end (minus any loan still owing) + what your cash could have earned. Fuel, insurance and maintenance are left out because they're about the same for all three options (insurance can cost a bit more on a lease or loan, since lenders require full coverage).
Sales tax: in Alberta you pay 5% GST on the purchase price, or 5% GST on each lease payment. Other provinces add PST/HST, so change the rate if needed.
Depreciation: honest about the uncertainty
No one knows what your truck will be worth in 2031. We use ranges published by Canada's Financial Consumer Agency (about 25% in year 1, then 15–25% a year) and Canadian Black Book (20–30% in year 1, then 8–15% a year). Pickups have often held their value better than average, so try the "holds value well" curve. Then switch curves and see whether the winner changes.
What to do next
Auto loan rates
Get a bank quote to compare with dealer financing. [Partner link: auto loan marketplace]
Compare loan rates →Insurance quotes
Leased and financed vehicles need full coverage. [Partner link: insurance comparison]
Compare insurance →Vehicle history report
Before buying out a lease or a used truck. [Partner link: history report]
Check a VIN →Sources & assumptions
This is an estimate. Lease and loan contracts vary (money factor, fees, wear-and-tear charges, early-termination terms). Read yours. NorthNumbers isn't affiliated with any bank, lender, dealer or government agency. Nothing here is financial, tax or legal advice.