Leasing vs Buying:
Pretty simple. Compare the rates, calculate how much interest you pay.
The rest of the equation is in the residual. The leasing company has to take a guess at what the resale value will be at the end of the lease. If they guess high, you win. Give the car back, and you haven't paid for the full depreciation. If they guess low, buy out your lease, sell privately, and you'll recoup whatever the gap was.
If you are going to keep the car for X years, it's a straight interest calculation. Leasing isn't renting at all.
The real mistake of all of this is buying a new car. THAT is the dumb financial decision.
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