Re: Longer-term leases - considerations... - Saab 9-3SS Bulletin Board - Saabnet.com
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Re: Longer-term leases - considerations...
Posted by PaulO (more from PaulO) on Thu, 10 Nov 2005 15:42:13
In Reply to: Longer-term leases - considerations..., MJ, Thu, 10 Nov 2005 08:26:15
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I would think that depreciation is much greater in first two years, versus 3rd and 4th, so that, so that the average monthly depreciation (what you pay for along with interest) would be lower. Sounds like they are subsidizing the shorter-term lease with a lower money factor.
The other consideration are the transaction costs: any down payments, acquisition fees, disposition fees, etc. If you have $1200 in such transaction costs, that adds (in effect) $50 per month to a 24 month lease, or $25 per month to a 48 month lease. Also, insurance and excise taxes will be somewhat higher on a newer car each year.
posted by 209.6.208...
Posts in this Thread:
- Help me figure out a lease!, MJ, Wed, 9 Nov 2005 16:09:00
- Right on, but a contorted presentation...., Mike Lynch , Thu, 10 Nov 2005 14:03:17
- Re: Help me figure out a lease!, JSU02, Wed, 9 Nov 2005 19:08:40
- Just for comparison I recently priced out a 2006 AudiA4, Jon P, Wed, 9 Nov 2005 18:58:33
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