Quote:
Originally Posted by LBBDrew
If you're going to buyout @ the end of the lease, it would still be cheaper to just finance, no?
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not necessarily. it could actually be cheaper to lease then buy, than just buy.
1) calculate what the money factor gives you in terms of interest rate..it may be lower than the buying finance rate
2) you may be making higher payment over the first 3 years which means you are reducing principal quicker and in turn means you are paying less interest over the life of the loan.
over the course of 5 years it can absolutely be cheaper to lease for 3 and finance for 2, rather than finance for 5 from the start.
havent run the numbers on this but its absolutely a possibility.