My Plans Have Been Wrecked

sayoung wrote:

Trackrig wrote:
I've never understood leasing a vehicle. You never pay it off - you're always making a payment just like this going from one lease to the next lease and you never have anything you can sell or trade in, in the end????????

I don't think you should be leasing a new truck in retirement.

Bill

They are better known as a " FLEASE "

That's because you don't understand how a lease works.

When you lease a vehicle, you pay for the depreciated value of that vehicle over the term of the lease.

For example, let’s say me and you obtain a vehicle worth $60,000. Also, let’s assume the depreciation on that vehicle over 4 years is 40%. Now let’s say you buy the vehicle over a 4 year period and I lease it over a 4 year period.

When you buy the vehicle, you’re financing the full $60,000 over 4 years. When I lease I am financing the depreciation $24,000 ($60,000 x 40%) over 4 years. So at the end of the 4 years you have financed and paid for a $60K vehicle that is now worth $46k. At the end of the 4 year lease all I financed and paid for was the $24,000 that was used up (the depreciation). That’s why a lease is always cheaper than buying.

But at the end, no one got fleeced, we both paid $24,000 to use the car for 4 years. You can now sell the car and get your $46,000 that you already paid for back if you want. And at the end of the lease, I can still buy the car for $46,000 if I want to.

You don’t Have to take my word for this, look up how a lease works on the internet.