1999-2009 [Subscribe to Daily Digest] |
 | [Main 95 Bulletin Board | BBFAQ |
Prev by Date | Next by Date | Post Followup ]
Member Login / Signup - Members see fewer ads. - Latest Member Gallery Photos
Arithmetic and no right answer...... Posted by Mike Lynch [Email]  (#81) [Profile/Gallery]
(more from Mike Lynch) on Tue, 11 Jan 2005 12:49:05
In Reply to: 2005 incentives - lease vs. buy, buckeye  [Profile/Gallery]
, Mon, 10 Jan 2005 18:26:59
Members do not see ads below this line. - Help Keep This Site Online - Signup
|
I can do the arithmetic for you, but that misses one of the main advantages of leasing, the future value of all the money you don't pay for the car while your leasing.
The other leasing advantages are: my personal favorite is you pay tax only on the payment thereby screwing the government out of their sales tax, free gap protection means that you're never upside down in case of a total loss or required to keep the car in the case it's not quite totaled, residual/purchase option meaning you're insulated agains wild swings in resale or can take a profit in the unlikely event it's worth more than the residual.
As for the arithmetic, you're giving up $1,000 in incentives and $750 in loyalty = $1,750, but you're saving $1,800 ish in finance/lease charges because the subvented lease rate you quote of .00057 is the equivalent of 1.37% vs a buy at 5%. That is the lease charge is $31 ish a month times 36 = $1,116 vs a finance charge at 5% for 36 months of almost $2,900. This is caculated on a mythical Saab with an MSRP of $40k and almost zero down.
There are many, many other factors to consider such as the acquistion fee, $595, the tax, lic and finance charges if you do purchase at the end of the lease, tax write of advanteges whether it's the lease for busines or using a home equity loan for a purchase and others that may only apply to you.
There is no right answer and furthermore there may be an entirely different landscape next month without the $750 loyalty advantage or the $1,000 incentive advantage, but in general, IMO, a Saab lease is the best overall deal usually as it COMBINES a genersous incentive AND a low rate.
posted by 63.197.222...
, Mon, 10 Jan 2005 18:26:59, Tue, 11 Jan 2005 12:49:05 <-- Viewing This Message, Tue, 11 Jan 2005 14:23:38
No Site Registration is Required to Post - Site Membership is optional (Member Features List), but helps to keep the site online
for all Saabers. If the site helps you, please consider helping the site by becoming a member.
 |
 |
 |
 |
 |
