-hh
Nashton wrote:

Nashton
Lloyd E Parsons wrote:

Lloyd E Parsons
sms said:

sms
If you're buying a vehicle with poor resale value, and plan to keep it only 3-5 years, and there's a good lease deal, then leasing can be a better deal than buying.

Lloyd E Parsons
In general only low mileage lease deals are better than buying. If you drive a lot, leasing can be no better than buying and sometimes even worse.

-hh
Note to Nicolas: these are two separate statements made by two different people, and both statements are clearly phrased as broad generalizations.

[Maxima]

Nashton
If I had bought, my payments would have been close to $600 and with> leasing, I'm paying $390/month with the same down payment.

...my mileage will be close to 20000 klms/year (hardly a low klm lease).

-hh
20,000 kilometers/year = 12,500 miles. That's a below average number of miles as far as the industry is concerned, as the National Average is IIRC 15,000 miles/year. Of course, there can also be found leases with even lower mileage restrictions.

Nashton
At the end of the lease, residual value is $10000. My lease is for 24000 klm/year ...

-hh
Yup, 15,000 miles/year. Very average.

Nashton
... I can turn around and buy the car and sell it for $13000, .. [$3K net]

-hh
Speculation.

Nashton
Let's do some math.

$200 savings month for 5 years. $210 x 60 is $12600 in savings.

-hh
So is it $200 or is it $210? Not that it really is significant, but it illustrates your sloppy analytical skills.

Nashton
If I get $13000 for the car at the end of the lease, I even make a profit of $3000.

-hh
Again, speculation. Also don't forget paying applicable taxes on that additional transaction.

Nashton
Total savings: $15600 over 5 years, on a car that I would not have kept anyway beyond 5 years.

-hh
Which is a strict conditional requirement: you cannot keep the vehicle even a week longer than 5.0 years without a significant change in cost/expenses. Remember "Cost-Schedule-Performance"? You have a risk-based expense that you're trying to ignore here. FYI, there is the potential for a hidden cost in Gap Insurance factors too.

Nashton
To boot, my company pays me 45 cents/klm, so it's at a minimum cost to> me considering the tax savings, which would have not changed if I bought>it outright.

-hh
Ah, so it _is_ a business expense deduction after all; so much for *personal* affluence claims.

Nashton
Can you now explain why and how there is any truth in your tired platitudes about low resale values, low mileage and the rest, when I> just proved that I''l be saving in excess of $15000 over the course of 5 years as opposed to buying?

-hh
Here's an alternative perspective, based on your own numbers:

Your 5 Year Lease: "X" Deposit + 60*$390 = ($23,400 + X) spent. Residual value at end = $0 Net outlay = $0 - ($23,400 + X) = ($23,400 + X)

Notional 5 Year Loan: "X" Deposit + 60*$600 = ($36,000 + X) spent Residual value at end = $13,000 (per your claim, remember?) Net outlay = $13,000 - ($36,000 + X) = ($23,000 + X)

Outlays comparison: Lease minus Buy = ($23,400 + X) - ($23,000 + X) = $400

Ergo, buying is $400 cheaper than leasing. Using _your_own_ numbers.

Nashton
I can go on 2 vacations a year on the money I'm saving, fer Christ's sake.

Can any of you Mac advocates say anything of value, anything of> consequence that holds any water?

-hh
You mean other than your own numbers show that buying could be $400 cheaper than your lease deal? Well, okay...but only because you asked: Doing the math on where you equated your claimed $15,600 savings as being equivalent to two vacations/year for five years, it works out to show that you consider your average vacation to cost all of $1,560. In Canadian dollars, no less.

-hh