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Originally Posted by TagMan
Buying New or Used or Leasing — The 10-year picture
In the following example, we show you what it costs to buy and own a new or used car or to lease a car for 10 years. In these examples, we assumed that the car was worth $20,000 when new and was financed at a 6 percent interest rate. Also, in each case, a down payment of $1,000 was made. These figures are estimates to give you a comparative feeling for these different car financing scenarios.
If You Buy Your Car: Purchase your car with the help of an auto loan, and you will make higher payments for the first five years, but then you will own it. Over 10 years, this averages $191 a month or a total cost of $22,920, not including insurance, maintenance and the like.
If You Lease Your Car: Purchase your car with the help of an auto loan, and you will lease more than three times, each time making an initial payment of $1,000 and monthly payments of $323. For 10 years, this is a total of $41,760.
Clearly, car leasing is the most expensive way to go.
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Why bother to buy a car after 10 years - why not just buy one and keep it for the rest of your life - or why own one at all. Not owning a car is the best financial decision.
I think you are making over-generalizations. From a practical standpoint, you need to look at the numbers for leasing and buying each and everytime you are looking at getting a new car. It depends on a number of factors which option makes the most sense.