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Leasing Vs. Buying Out: The Story of Billy and Bob
Published 6/25/25
Meet Billy and Bob. Two regular guys, two different approaches to car ownership. Over the next 15 years, Billy and Bob will both drive cars, make payments, and live their lives.
But by the time we reach the finish line, only one of them will be sitting on a pile of equity, debt-free, while the other is stuck in an endless cycle of car payments.
Let’s see how their stories unfold.
Scenario A: Billy Buys Out His Lease and Wins Big
Billy starts off like a lot of people, leasing a car. He enjoys a low monthly payment of $400 and drives his vehicle for three years, racking up memories and road trips (all within the mileage limit, of course).
But when his lease ends, instead of jumping into another lease, Billy makes a power move: he buys out his leased car.
The buyout price? $30,000. He finances it over five years at an 8% interest rate, making payments of $608.29 per month. That might sting a little at first, but Billy knows this car is reliable, and in just five years, it will be his.
For the next 10 years, Billy enjoys a payment-free life. He saves money, takes his family on road trips to actual destinations he can now drive to, and puts his extra cash into investments.
Over 15 years, here’s what Billy’s spent:
- Lease payments (3 years): $14,400
- Loan payments (5 years): $36,497.51
- Repairs (years 9-15): $2,000
- Total spent:$52,897.51
- Positive Equity in the car (resale value): $15,000
Billy’s total net cost: $37,897.51
He owns his car outright, still has $15,000 in positive equity, and hasn’t made a car payment in a decade.
Not bad, Billy.
Scenario B: Bob Stays in the Lease Loop
Bob, on the other hand, loves new cars. Every three years, he returns his leased vehicle and gets the latest model.
At first, this seems great—new features, new-car smell, new man. But there’s a catch: his payments keep going up.
Here’s how Bob’s leasing journey plays out:
- First lease: $400/month × 36 months = $14,400
- Second lease: $480/month × 36 months = $17,280
- Third lease: $576/month × 36 months = $20,736
- Fourth lease: $691.20/month × 36 months = $24,883.20
- Fifth lease: $829.44/month × 36 months = $29,860.80
After 15 years, Bob has spent $107,160 on car payments. And he owns. . . absolutely nothing. No equity, no trade-in value, just another monthly bill.
And remember those weekend trips Billy took to Disneyland? Bob’s lease mileage restrictions forced him to turn around halfway, so he just settled for stopping at those random statues along the freeway to California.
Billy vs. Bob: The Final Score
| Billy (Buys Out Lease) | Bob (Leases for 15 Years) | |
| Total Spent | $52,897.51 | $107,160 |
| Positive Equity | $15,000 | $0 |
| Number of Future Car Payments after 5 years | 0 | Infinite |
| Maintenance Cost | $2000 | $0 |
| Life Enjoyment | Road trips, financial freedom | Mileage Shackles |
What Can We Learn from Billy and Bob?
Leasing has its perks, but if you’re constantly rolling into new leases, you’re basically renting a car forever. Buying out your lease gives you the best of both worlds—you already know the car, and you can turn it into an asset instead of an endless expense.
If you’re like Billy and want to take ownership of your car without the hassle, Lease End makes it easy. In just 12 minutes, we’ll help you secure the best loan rates, handle the paperwork, and even deal with the DMV. Why keep paying forever when you can own your car outright?
Make the smart move—contact Lease End today!
About the author
Adam Broud
Adam Broud is a writer and comedian based out of Salt Lake City, Utah. As a professional stand-up comedian with an MBA, his writing uniquely blends the worlds of business and comedy. Adam's writing for ads and comedy has appeared in places such as Buzzfeed, Vanity Fair, your television, and his mom's box of keepsakes. Feel free to review his writing from any of those places, but just know it's kinda weird if you choose his mom's house.
Lease End's mission is to empower auto lease owners with the technology to easily exit their lease. If you'd like to learn more about the lease-end options available to you, please don't hesitate to contact us. Our expert advisors are always prepared to answer your questions and are committed to finding the right plan for your individual needs.
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©2025 Lease End
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