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A good way to look at leasing

765 views 13 replies 9 participants last post by  Tony Mack 
Tony, you have a point. It's just that some people like the feeling of owning the car. And then, it's sometimes difficult to get out of a lease. If you finance, you can usually sell the car and pay off your loan.
If you figure the time value of money, it's definitely better to lease (unless you plan on driving a lot).
To support your agreement, if the difference in the lease and loan payment (roughly $400) is invested in a good S&P 500 mutual fund for the next 4 years, you'll have at least $25K by the end of your lease term.
But I plan on keeping my IS300 for more than 5 years (even after I get another IS - hopefully a redesigned model in the next 4 years), so it's not such a bad idea to finance for me. Also, I got a great rate (5%) for the next 3 years, with $10K down, so I won't be paying as much in interest.

Thanks for the post.

black/ivory
17"
 
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