The assumption that you come out ahead in 36 months by buying rather than leasing just doesn?t make mathematical sense to me if you look at the numbers. Assume a purchase price of $33,500 (inclusive of delivery) for an 05 TL w/Navi, 4.5% for both your loan rate and my lease rate (lease rate money factor of 0.00185 [I actually got a 0.00175, {4.2} you might have gotten better on your loan]), sales tax of 7.25%, 0 money down for both of us and a value at the end of 36 months of $19,765. (a 59% residual value as currently calculated by banks on a 36 month old 05 TL)(and they?re better at guessing values then we are) and we?ll give you the benefit of the doubt that you paid your sales tax up front rather than financing it and raising your payments.
Loan: A 60 month loan @ 4.5% = $624.54 /mo.
$624.54 per mo. x 36 mo. = $22,483.44
+ $2,428.75 sales tax (paid up front)
= $24,912.19 in total payments
Sell @ $19,765 - $14,998.96 Still owed on loan
=$4,766.04 in your pocket (your equity)
Lease: $481.40
Tax $34.90 p/mo (total $1,256.50 over 36 mo.)
=$516.30 x 36 months = $18,586.80
+ Acquisition fee $595
+ Disposition fee $350 = $19,531.80
Sell @ $19,765 w/0 owed = $0.00 in my pocket.
Your total payments = $24,912
My Total Payments = $19,531.80
You paid more = $ 5,380.39 difference - your $4,766.04 equity = $614.35
OK, no big difference then? Well, what about the question of whether or not you can actually get $19,765 for the car when you sell it. Will that be the value? Also, no dealer is going to give you that on trade in because that is the sales value of the car, not trade in value (it will be $2-3k less). You?ll have to go through the hassle of selling it yourself.
