DaveinOlyWA
Well-known member
checked and mine is same. oh well. acronym have always been hard for me
greenleaf said:Thanks for the very comprehensive spreadsheets.
After playing with the numbers, my penalty for leasing and then buy out is $2520.
How do you decide if this is a "good" premium to pay for the insurance of being able to dump the car after 39 months?
I am comparing financing with a 2.49% loan versus the 39month/12k-mile 4.9% lease. In both cases I am putting $6265 down.
Thanks for any pointers.
Just using excel formula.DrillbabyDrill said:How did you calculate NPV of payments? I can't figure out what that is coming from.
evnow said:Just using excel formula.DrillbabyDrill said:How did you calculate NPV of payments? I can't figure out what that is coming from.
You will lose some lease fees - but won't have any penalty. People have tried it ... and written about it here.GoSolar said:In the past I paid off a mortgage with no penalties or additional fees. Does the same thing work with a lease through GMAC or Nissan Leasing for a car?
hcirlub said:It seems to me that the amount of tax credit that you qualify for is one of the biggest driving factors in deciding whether to buy outright or lease then buy. Using the spreadsheet it looks like $7050 or higher for tax credit makes buying more attractive. Where as if don't qualify for at least $7050 in tax credits you should lease. It seems like leasing is a no brainer for people with a low tax credit opportunity. Am I over simplifying this?
There are multiple reasons why some one might want to lease - including the one you state. A lot of us are leasing because we want to have greater flexibility after 3 years to upgrade to better models as we expect more options in 3 years. This calculation puts a financial cost to such flexibility.hcirlub said:Am I over simplifying this?
evnow said:Here is another way to compare. In this case, I'm taking a loan such that the pay off left on loan is exactly equal to the lease residual (balloon loan). In the case of buy out, you would either pay the residual or pay cash to close the loan. In the case of sell off, you would sell the car and use that money to pay off the loan.
Notice that since I'm using 5%, the difference is close to the acquisition cost, which is extra in lease. I've left out any financing fees etc you may have to pay to the bank in the case of financed buy. In the case of sell off - the difference is greater because of disposition fee. Again, I'm ignoring the selling cost.
Again, as you lower the int rate, the bigger the difference between lease and buy becomes.
So, when you compare this way, you see that lease vs buy comes down to
- Extra fees you pay for leasing (Acquisition of 595 and disposition of 350)
- Difference between the 4.9% offered by Nissan and the interest rate offered by your lender
Hope this helps demystifying the lease.
The downpayment (2,000 in 2011, 2500 in 2012) is the assmued downpayment (apart from 7.5K) to come to the $349 lease monthly payment (now $369). You can have more or less than this figure and that will change the monthly lease figure.N952JL said:I believe you have made an incorrect assumption. If you lease the car, my understanding is the 7,500 tax credit is used by the leasing company and is applied as your down payment to the lease, giving you more than the required down payment resulting in lower monthly payments.
evnow said:The downpayment (2,000 in 2011, 2500 in 2012) is the assmued downpayment (apart from 7.5K) to come to the $249 lease monthly payment (now $269). You can have more or less than this figure and that will change the monthly lease figure.N952JL said:I believe you have made an incorrect assumption. If you lease the car, my understanding is the 7,500 tax credit is used by the leasing company and is applied as your down payment to the lease, giving you more than the required down payment resulting in lower monthly payments.
Thats' right.smilingbee said:Did you mean $349 and $369 as the monthly lease payments?
That could definitely change the "lease vs. buy" equation for IL residents. It's too bad they don't include leased vehicles--seems shortsighted to me. CA doesn't care if you lease or buy for their rebate program, you just need to register and use the car in the state for at least 2 years. Unfortunately, the amount of the rebate has dropped from $5K to $2,500 in CA. It will allow more people to get the incentive $$$, but at a lesser amount.redLEAF said:Not to over complicate things on Lease vs Buy comparisons but I need to add this in as it may apply to some of the Tier 2 areas where if the state offers an incentive, it may only be for "purchased" not leased vehicles. I'm still waiting for a response back from the manager of this program for the state of Illinois but as it stands today, their 10% of MSRP rebate for EV's (up to $4K) ONLY applies to "purchased" cars, not leased ones...
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