Leasing?
We are convinced our next car will be leased. $200-300 a month and always have a new car with no repair worries. You either make the payments or put the payments in the bank each month for the next ...
Forum Discussion
Ric Flair wrote:jsr21 wrote:
The payments applied work just like a finance contract...part goes to principle and part goes to interest.
Example...lets say you bought two new trucks..identical.
Both sold for $40000
You leased one and financed the other....both for $500 pr month
and both at the same interest rate...
You'll owe the same on either one at any given time
Yes, and at the end:
If you lease you'll be faced with potential charges and penalties for abnormal wear and mileage overages.
If you purchased, you'll have the residual value of the vehicle with none of the liability of a lease.
I know there are pros and cons here, but the mileage limitations alone keep me from leasing.
That would only be a problem if you were unrealistic about mileage needs at inception.
Leasing is really no different than financing...biggest difference is you only commit to paying for part of the unit instead of the whole thing.
If at the end of the lease the unit is worth less than the unpaid balance...you have options.
There are examples where it was cheaper for the customer to spend $1000 at lease end to deal with windshields, scratches, etc than it was to tackle the negative equity....a choice you wouldn't have on a regular finance contract.
