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Re: Lease to purchase better than purchasing up front?
Here's my $0.02,
The simple way to look a how a lease works is that you pay for the value of the vehicle that you use. If a $30000 vehicle is calculated to be worth $20000 at the end of the lease you pay the difference, $10000. The buyout at the end of the lease will be the $20000. If the above lease was over 3 years you would pay the $10000 plus taxes, security deposit etc. plus the interest on the lease. By the end of it you pay more than the $10000. When you buy out the lease at the end of the three years you finance the $20000 plus fees, taxes and again loan interest so you end up paying more than the $20000. If you pay off the loan in 4 years you have now been paying for the truck for 7 years and more importatly you have been paying interest for 7 years. If you buy the truck from the start you pay interest for 5 years and you are done. Hope this doesnt make things more confusing!!
I have gotten into trouble with a leased vehicle, I got laid off and my only wheels were leased, when the payments were too much I turned in the vehicle early and had to ride a bike everywhere. I swore right then that I would always own at least one vehicle. If the payments are too high to buy right now then save for a few more months until you can afford it! A lease is great if you only want the vehicle for a short time.
Just my opinion.
Oh BTW.... My gf and I now own the FJ and lease a minivan... I will NEVER own a minivan and since we cant afford to buy another SUV right now and will get rid of the van ASAP, the lease is a perfect option.
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