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YACT: quick question about depreciation
- Thread starter chambersc
- Start date
Stupid N00b
Banned
Not even. 30% after you drive it off the lot, and another 10-15% annually after that.
well i ask because the lease options on the honda website offer this. i felt i had to get an opinion since it's my understanding that common depreciation is 30%.
here, ill quote.
"Total monthly payments $5,724.00. Option to purchase at lease end $8,464.50. Lessee responsible for maintenance, excessive wear/tear and 15¢/mile over 12,000 miles/year. "
5724 + 8464.5 = 14188.5
MSRP: 15675 - 14188.5 = 1486.5
the lease term is 36 months thus 1486.5 depreciation over 36months. fuzzy math?
here, ill quote.
"Total monthly payments $5,724.00. Option to purchase at lease end $8,464.50. Lessee responsible for maintenance, excessive wear/tear and 15¢/mile over 12,000 miles/year. "
5724 + 8464.5 = 14188.5
MSRP: 15675 - 14188.5 = 1486.5
the lease term is 36 months thus 1486.5 depreciation over 36months. fuzzy math?
No.
The $5724 total payments is some combination of depreciation and interest (money factor).
The $14188.50 is what's called a capitalized cost. Capitalized cost is the amount that the vehicle is "sold" for.
The "depreciation" is impossible to get a real number on without know what the money factor is.
The bottom line is that you are paying $5724 over 3 years. That's more along the lines of 40% which is still good(60% residual value). Many domestics have residual amounts around 40%-45%.
In those lease payments you also have to factor in sales tax and possibly gap insurance.
The $5724 total payments is some combination of depreciation and interest (money factor).
The $14188.50 is what's called a capitalized cost. Capitalized cost is the amount that the vehicle is "sold" for.
The "depreciation" is impossible to get a real number on without know what the money factor is.
The bottom line is that you are paying $5724 over 3 years. That's more along the lines of 40% which is still good(60% residual value). Many domestics have residual amounts around 40%-45%.
In those lease payments you also have to factor in sales tax and possibly gap insurance.
fbrdphreak
Lifer
Um, k. Honda's don't depreciate that much....
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