I went to some sites and ran the following numbers through lease and loan
calculators: Vehicle price-$22000 Downpayment-$2500 APR-9%
resale value-$13000 and here were the results
Lease(36 mo.) Finance(36) Finance(60)
Monthly Payment 302.43 620.09 404.79
Total cost if keep
truck 26387.48(1) 24823.24(2) 26787.40(3)
Total cost if get
rid of truck 13387.48(4) 11823.24(5) 13787.40(6)(7)
These numbers do not take mileage or undue wear and tear into consideration.
These can add up to quite a bit at lease end.
Whether or not you choose to keep the truck at the 36month point, it still
will cost you less OVERALL to buy than to lease. Lease advantage is lower
monthly payments.
(1) (302.43 X 36) + 2500.00 + 13000.00
(2) (620.09 X 36) + 2500.00
(3) (404.79 X 60) + 2500.00
(4) (302.43 X 36) + 2500.00
(5) (620.09 X 36) - 13000.00
(6) (404.79 X 60) + 2500.00 - 13000.00
(7) Assumes selling truck at 36 mo. and paying of loan balance with sale
proceeds. Does NOT give prepayment credit which would make this figure
lower.
Dr. Pat
----------
>From: Alan Short <ashort@flash.net>
>To: dakota-truck@buffnet.net
>Subject: Re: DML: Lease or Buy an R/T??
>Date: Sun, Jan 31, 1999, 5:45 PM
>
> Mike Crumley wrote:
>>
>> At 04:02 PM 1/31/99 , you wrote:
>>
>> >Leases are for people who absolutely cannot afford the payments of a
>> >"purchase".
>>
>> Not necessarily. Depending on the individual circumstances, there may be
>> significant advantages to leasing (people who trade in their vehicle every
>> few years instead of keeping it for an extended period, for example). Lease
>> payments are not necessarily lower than payments for buyers either.
>> Especially when you consider the down payment that's always required for a
>> lease. I see way too many high income executive types driving leased
>> vehicles to accept your conclusion.
>>
>> Mike Crumley 97 V6 Auto
>> mail to: mcrumley@airmail.net
>>
>> Life's a bitch, and life's got lots of sisters.
> Mike, you may be missing something on the executive lease. Many times
> corp.s give an auto as a perk, and as a dual purpose, they can write off
> the lease. However as an individual you can't write it off, so you may
> as well buy. Alan S.
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