Quote:
Originally Posted by TylerSVT
But the Buyout will be higher than the worth of the car, wouldn't it make more sense to buy the same car used at a lower cost and then either pay out of pocket, or run a line of credit for that?
In the end the fact that the buyouts are more expensive than the value of the car is what puts me off of leases.
Plus i couldn't stand the idea that you are "renting" a car effectively.
Edit: If you can write it off and the numbers work out, more power to you.
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You should really re-think this.
'A', 'B' and 'C' each buy an identical new car for exactly the same price ($25,300+gst) and maintain and drive them similarly for 4 years (64,000km).
'A' Leased with Zero down for 48 months at 3.9% and their monthly payments are $408 (incl. taxes). At the end of 48 Months they have put $19,584 into the vehicle and have the option to walk away or buy out for $11,502.
'B' Financed with Zero Down for 60 months at 2.9% paying $511/month. They have put $24,528 into the vehicle and have $12,264 in payments remaining
[EDIT: The remaining payments number is incorrect, it should be half that $6,132].
'c' paid cash up front $28,517 including all taxes and fees.
After 48 months, all 3 Cars are now worth $12,500 each.
Who is further ahead?
** All figures are from the Toyota.ca 'Build and Price" website for a base 2011 Camry