Quote:
Originally Posted by eelnoraa
Nice analsys. Now I will be able to convince my parent to at least consider lease.
I agree with every point you mention except one:
Under Purchasing Con section:
"If you trade in or sell your car within the first few years, it’s going to potentially cost you a lot of money"
It is true that you pay more money for purchasing than leasing for the first 3 year. But you also own the bank less money because your paid off more.
Assuming one is selling the car at the same price as the residual value. The amount of money spend for purchasing and leasing is about the same here too.
Of course, it will depend on a lot of factor like interest rate, milage .... And of course the hassle of selling the car yourself.
Please correct me if I am looking at this wrong.
eel
|
the key word in my sentence is potentially. It MAY cost you a lot of money in the first few years--UNLESS you put a large portion of money down. But lets say you do put 5,000 down and make your 900 dollar payment every month for the first 1.5 years and then decide you want to trade it in. That means you've spent a total of 16,200 plus 5,000 down! That's a lot of juice! And what that really means is, that car cost you 1,177 dollars per month to drive. So, if you are able to sell it for what you owe...does that put you ahead of the game? ...based on what your total costs were for that first 1.5 years, i'd say not!