Quote:
Originally Posted by Sliver
Unless I'm missing something the guy financing the car is further ahead. He's put $4944 more in than the leasing guy, but as long as he has more than $4944 equity in the car - which I think he would - he's ahead of the guy leasing.
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No, he has paid $4944 more that "A", and has a few hundred in equity. Keep in mind he still owes around $12K for the car; and it is only worth $500.
Leasing really makes sense if you plan on getting rid of the car in 3,4, or 5 years. Because you are only financing the difference between the price of the car and the trade in value, you end up paying a lot less in interest.
One major downside of leasing; if your circumstances change it is a lot harder to get out from under your payments. I have a 2 month old vehicle which we bought; and if something happened where we couldn't afford it; I could sell it a lot easier than trying to get out of a lease.