The old-school financial advice was simple: “Never lease. It’s just renting a car you’ll never own.” But as we move through 2026, the rapid evolution of automotive technology—specifically in the Electric Vehicle (EV) and software-defined vehicle space—has flipped the script. The math of depreciation has changed, and blindly buying could be a costlier mistake than leasing.
At Cortex, we focus on Total Cost of Ownership (TCO). Whether you lease or buy, the goal is the same: minimize the amount of your net worth that “evaporates” into a driveway ornament.
The Tech Obsolescence Factor
In the past, a five-year-old car was just a slightly older version of a new car. Today, a five-year-old EV can feel like a five-year-old smartphone. Rapid improvements in battery density, charging speeds, and autonomous hardware mean that older models can see “cliff-like” depreciation.
Leasing acts as a hedge against this technological obsolescence. You aren’t just paying for a car; you are paying for an option to walk away in three years if the technology has been surpassed. You shift the “Residual Value Risk” from your balance sheet to the bank’s.
When Buying Still Wins
Despite the tech shifts, Buying (especially used) remains the champion of pure mathematical efficiency for many. Buying makes sense if:
- You Drive High Mileage: Leases penalize you heavily for exceeding 10,000–12,000 miles per year.
- You Keep Cars for 7+ Years: The cheapest car you will ever drive is the one you already own that is fully paid off.
- You Value Asset Ownership: Once the loan is gone, the car remains an asset on your Net Worth Engine, even if its value is declining.
The “Opportunity Cost” of the Down Payment
Leases often require “zero down” or very low drive-off fees. Buying usually requires a significant chunk of change up front to follow the 20/3/8 rule. If you take $10,000 and put it into a car down payment, that is $10,000 that isn’t sitting in an index fund compounding for your future.
When interest rates are high, the “cost” of that down payment includes the 8–10% return you could have earned in the market. This is the Invisible Leak in most car-buying calculations.
Total Cost of Ownership: The Only Number That Matters
To make the right choice, you have to look past the monthly payment. You must calculate the insurance premiums (often higher on leases), the maintenance costs (often included in leases), and the projected resale value. In 2026, the “winning” choice is the one that leaves your monthly cash flow with the most “breath” to feed your investments.
Run Your Own Depreciation Simulation
Don’t let a dealer’s “four-square” worksheet confuse you. The Cortex Car Affordability Calculator helps you break down the true math of leasing versus buying based on your specific mileage and tax situation.
See exactly how each option impacts your long-term wealth trajectory before you sign the dotted line. Drive what you love, but keep your net worth in the fast lane.