Quote:
Originally Posted by firebug
How could he have more equity? The cars are worth the same, and the lessee has the same ability to extract equity (value - buyout) as individual B.
Here's the trick, the value of the car is independent of how it is financed. What is important, to me at least(excuse the pun), is how each individual got to that position.
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The lessee doesn't own the car, so he can't extract any equity from it...he's been renting it. The guy financing has the potential to have equity in the car, but until one of us takes the time to track the depreciation of many cars to come up with averages it's a moot point. You're saying he wouldn't have any equity, I'm saying he might have some.