Leasing questions.
Looking to the future if I replace the Winnebago with a fifth wheel then I'll have to purchase a truck. Has anyone leased with good results?
Forum Discussion
I can see there is a lot of people that don't understand what a lease is. A lease is simply financing the "portion" of the vehicle that you will be "using up". A lease consists of three parts, the "purchase price" of the vehicle, a "residual value" (what it will be worth at the end of the lease), and a "interest rate". All three are negotiable.
The "purchase price" minus the "residual value" is the portion you are financing; this is basically the value of the vehicle you are "using up" over the term of the lease. A lease is a purchase of the part of the vehicle you are "using up" at the agreed to "interest rate" over the agreed to period of time. The payments are calculated the exact same way as the payments for an outright purchase. At the end of the lease you can purchase the vehicle for the "residual value" you agreed to at the very beginning of the lease.
Whether it is a good deal or not depends on way to many variables to discuss here. But there is nothing magical about how a lease works or how the payment is calculated.
The "purchase price" minus the "residual value" is the portion you are financing; this is basically the value of the vehicle you are "using up" over the term of the lease. A lease is a purchase of the part of the vehicle you are "using up" at the agreed to "interest rate" over the agreed to period of time. The payments are calculated the exact same way as the payments for an outright purchase. At the end of the lease you can purchase the vehicle for the "residual value" you agreed to at the very beginning of the lease.
Whether it is a good deal or not depends on way to many variables to discuss here. But there is nothing magical about how a lease works or how the payment is calculated.
