Just spreads out the expenditure over 9 years vs 6 if you take the longest terms on everything. Example: We have now bought 2 new Grand Cherokees. Both roughly $44k. Bought one on a 72 mo loan and its paid now. Newer one is leased. The lease results in $220 lower payment for the lease term and about $300 lower for the loan term or alot more car for the same payment and very little additional total cost. For those of us who have fairly static income but plan to work 40 more years it works great. hahaha Maybe you know but a $640 car payment hurts alot more than $420.What’s the sense in leasing then? You may as well have bought it outright to begin with. Probably at a more favorable interest rate.
Amortization and/or depreciation schedule. Look it up some time. :thumbsup:If you’re financing for 9 years we have no more to discuss.
Obviously leasing and racking up the miles is terrible. If you can't buy out or choose not to you get absolutely ripped. This is why we keep miles in check on the lease even though we plan to buy out. If life happens and we can't buy out we lose nothing.
Amortization and/or depreciation schedule. Look it up some time. :thumbsup:
We finance our equipment at work for 7-15 years depending if it ranges from $100k to $2mil. If its more expensive than that allows then we lease. Same same... Time is not a negative factor.
Mike, short term finance at the right rate might be best, especially if the lease is a business cost. I mentioned that we have tax advantages of paying for a lease out of pre tax pay, but you can't pay off the full vehicle during the lease period. There is always a "residual" and the shorter the lease the larger the residual. I'm doing my 2500 HD over three years but will still have about 55% to fork out at the end of lease.