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Probably doesn't make economic sense
Posted by David Mills (more from David Mills) on Tue, 6 Feb 2001 20:09:11
In Reply to: Saab has 80000km warranty, so its still under warranty, Paul
[Profile/Gallery]
, Sat, 3 Feb 2001 21:13:29
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I have had four leases and at the end of my first I turned the car in because what the car cost to buy at the end of the lease was far more than the car was worth. As a typical example, I can buy my 99 9-5 sedan in two years at the end of the lease for about $20,000. According to Edmonds, it is only worth $21-22K now. Imagine what it will be worth in two years. I'm sure I'll turn that one in.
On the other hand, if you really want to buy the car, I still think that some times it is better to lease first and then buy when you can find a lease which is virtually at no interest. My 00 9-5 wagon is leased at a 2.3% interest rate but if I had purchased it I would have paid more like 7 or 8. My lease on my wagon is far better than that on my sedan which is more like 7 or 8. I can buy my wagon in two years for about $21K and it probably will be worth it.
Point is though, most leases are not at 2 or 3% and it usually means buying a car at the end of the lease for more than the car is worth.
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