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Reply to "If you do not know car you want would you lease?"
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[quote=Anonymous][quote=Anonymous]It’s more complicated than always this or always that. Suppose you had a choice to buy a 40k car in 2010 or lease (no money down; good mo eu factor and residual). 300 a month. So at lease inception you had 39700 that you invested in an index fund. You pay the lease out of cash flow (salary) and release every 4 or 5 years. 3600 for 9 years is 32000 and change. Less than what you put in the index fund. And if the fund returned 5%, you’d have 65,000. The 300 a month invested only yields 47000. Plus, if you own you maintain. [/quote] Except most cars would last 15-18 years. Paying 40k one time allows you to save a lot more than paying 100k on leases over 18 years.[/quote]
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