Quote:
Originally Posted by DementedReality
as i said in my first post its because you are financiing 100% of the car in the first 4 years where as in leasing you are only paying for about 50% of the car.
if you take the difference in payment and invest it, you are far further ahead than buying the car through financing.
do the math.
|
I've "done the math" many times over. The only way leasing benefits you is if you write the lease payment off on a significant income tax bill, or if you can't afford the down payment without taking away from something where you need the money, like your personal investment plan.
A personal example from last year when I sold my 2002 Xterra --- I put 10K down on a $34K purchase in 2002. Payments were about $525 a month for 4 years with 0.9% financing. I sold it with 40K kilometers last year for $23K.... money that went straight into my pocket. Cash outlay: $35,200. Return: 23,000. Cost over 5 years: $12,200
I could have leased for something like $2000 down with $400 monthly payments, and I'd have had nothing at the end of 4 years. Lease payments would have been $19,200, plus the downpayment of $2000, I've spent $21,200, and after 4 years I still would have needed to get a vehicle for another year.
These are round figures, not exact, but pretty close.