evnow
Well-known member
I'm going to show various comparison calculations - and also post the spread sheets for you to make changes and do your own calculations. The posts will evolve over next couple of weeks.
I've a separate thread on non-financial basis of comparison (but more from my POV of why leasing is better for me).
http://www.mynissanleaf.com/viewtopic.php?f=23&t=1628
The key takeaway is 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 will help demystify the lease.
We are dealing with 2 basic scenarios.
1. Lease the car and buy it after the end of lease term. Correct comparison to this would be buying the car and keeping it for the long term.
2. Lease the car and return it after the end of lease term. Correct comparison to this would be buying the car and selling it off within a few years.
To make things simple, I'm going to make a few assumption.
1. No sales taxe. I know this doesn't hold good for most states - except NW states (WA, OR). I may do a special comparison for CA, since we have a large contingent from the "golden" state - if I understand the situation well enough ;-)
2. Use NPV method to compare. I'll also show the "dumb" adding up of all amounts. But that is always incorrect since money has time value. Afterall, this is the principle of modern economic setup (yes, even in "no-interest" Islamic countries).
3. Assume you can sell the car for residual value, when you buy the car. This won't be correct, but helps you understand what happens if the actual reslae value is higher or lower.
I've a separate thread on non-financial basis of comparison (but more from my POV of why leasing is better for me).
http://www.mynissanleaf.com/viewtopic.php?f=23&t=1628
The key takeaway is 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 will help demystify the lease.
We are dealing with 2 basic scenarios.
1. Lease the car and buy it after the end of lease term. Correct comparison to this would be buying the car and keeping it for the long term.
2. Lease the car and return it after the end of lease term. Correct comparison to this would be buying the car and selling it off within a few years.
To make things simple, I'm going to make a few assumption.
1. No sales taxe. I know this doesn't hold good for most states - except NW states (WA, OR). I may do a special comparison for CA, since we have a large contingent from the "golden" state - if I understand the situation well enough ;-)
2. Use NPV method to compare. I'll also show the "dumb" adding up of all amounts. But that is always incorrect since money has time value. Afterall, this is the principle of modern economic setup (yes, even in "no-interest" Islamic countries).
3. Assume you can sell the car for residual value, when you buy the car. This won't be correct, but helps you understand what happens if the actual reslae value is higher or lower.