For the same term, say 3 years, a loan payment will be higher than a lease payment. This is because for the loan payment you are essentially paying for the depreciation and the residual value of the car at the end of the term. With a lease payment, you are only paying for the depreciation at the end of the term. Yes, you will acquire "equity" with a loan but you have paid extra each month, over leasing, to acquire that "equity" (aka residual).
Quote:
Originally Posted by nn0wheremann
My father used to say “Buy a used car, buy another man’s problem.”
A lease is just another loan, just without the down payment and with no prospect of acquiring equity.
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