Into two parts :
1 . Lease , buy new , buy used : If you decide to purchase a car ,
cold of three different methods of following , analysis of hard cost .
2 . Discussion of non-monetary issues that may affect your
decision .
One car , three- way financing
In this analysis , we look at the car holding period average ,
pork estimates are nearly six years later . As an example , the market value of
true of $ 24.500 (TMV ®) price chose the 2013 Honda Accord EX we .
Here , a structured method is as follows: a variety of deals .
Lease : At the time of writing this article , this Accord will
have a special lease listed in the rebate page and ourincentives current . It
does not require the commission of drive off that does not run from three years
ago , lease carry monthly payments $ 344 .
Purchase of new : in order to buy this Accord , we value of $
24.500 is , chose the five-year loan down payment of 20% of the $ 5.430 . At an
interest rate of 3% currently available , the monthly payment is $ 390
Buy used : 3-year-old car , 2010 Accord EX, used TMV will have a
price of $ 17.761 . Select a four-year loan with 10% down ( $ 1.776 ) , we ,
provide funds to purchase 3.5 % of the four years . (Interest rate used car
loan is slightly higher than new car loan interest rates . ) Monthly payment is
$ 400 .
In the scenario of ownership of six years of us, we , please keep
in mind that it requires two cycles of every three years of the lease . For a
new car , in addition to the loan in '15 to pay for the car at all, it is going
to be a year of one additional ownership . In the case of used cars , it is two
years with no car payment or four-year loan .
After six years, here are the total out-of-pocket costs of each
approach (including tax and registration fees for California):
|
Leasing
|
Buying New
|
Buying Used
|
|
|
Total out-of-pocket
costs
|
$24,768
|
$28,830
|
$20,960
|
In terms of out-of-pocket expenses, leasing appears to cost $4,062
less than buying a new car. Buying a used car is $3,793 cheaper than leasing,
and a whopping $7,854 cheaper than buying a new car.
But remember that at the end of two leasing cycles, the person who
leased doesn't own the car. He or she has to start a new lease-or-buy cycle.
Meanwhile, the person who bought a new car would own a depreciated vehicle
worth about $11,000, according to the depreciation listed in Edmunds' True
Cost to Own (TCO®) calculator. The person who bought the used car now owns
a 9-year-old car worth about $5,000.
When we factor equity into the equation, the cost picture changes:
|
Leasing
|
Buying New
|
Buying Used
|
|
|
Total out-of-pocket
costs
|
$24,768
|
$17,830
|
$15,976
|
In this basic comparison, it appears the person who leased the
Accord paid $6,938 more to drive it for six years than did the new-car buyer.
Buying a used Accord saved only an additional $1,854 during this six-year
cycle.
Related expenses
We , the owner of the car , it must be pointed out that you are
spared the cost of maintenance and repair that occurs aging , when using the
car generally lessor . On top of the regular maintenance , the purchase of a
new car , at least , will have to pay for new brakes and tires would cost at
least one thousand U.S. dollars in the rotation of the tire and oil change
usually . The used car buyer , too , and there are these items , need to pay
for the repair of some additional , perhaps .
However , I will offset the cost of maintenance and repair for
those who bought a car lease , is the high cost of car insurance . The
insurance for lease cars such as the Accord EX such
, it is possible to add up to $ 900 for a six-year period , will each year at
least $ 150 extra .
So , people who lease money on extra maintenance costs , save to
pay nearly as much in extra premium . This is close to being a wash .
Other advantages of the lease
The people of the lease , it is true that you do not have of what
the car at the end of the lease , but they have the opportunity to buy a car in
the price set in advance . The finance company , at the beginning of the lease
, the purchase price of the car lease is set . There are several advantages to
this .
First of all , lease , to protect consumers from depreciation
excessive . Market value of the car as long as the drop in unforeseen
circumstances such as rising gas prices like this because of this decline in
value , do not come into contact with consumers . Particularly well , if it
holds its value , on the contrary , the consumer can be resold either to buy a
car at bargain prices , whether to keep it leased vehicles . In some cases ,
consumers can take advantage of capital that has been built up in the car lease
.
Another great benefit to the lease , is to provide a tax credit
attractive for those who are using the car for business . For more information
about this matter , the accountant is the best resource .
Charm of ownership
This is , to put a price tag on the value of ownership is
difficult . People buy a car , will be able to own it , to experience the pride
that goes it . Beyond the fun of abstract only have a nice car , ownership does
offer several advantages other .
Likes you , you will be able to change the car accurately without
fear to break the lease agreement you. Excess consumption is not a problem for
the car buyers . In addition , whenever they want of you , when the lease is up
, owning a car gives you the flexibility of more and more to sell not the car .
Finally, there are some other important elements to consider as
you decide. These are harder to monetize:
·
Leasing provides the
enjoyment and prestige of driving a newer car more often.
·
Leasing puts you in a
new car that has the latest safety, technology and comfort features.
·
Leasing in three-year
cycles means you are always under the manufacturer's bumper-to-bumper warranty.
·
Owning a car allows
unlimited driving with no mileage penalty. Leasing limits a person to only
10,000-12,000 miles per year. After that, each mile typically costs 15 cents.
While there are many factors to consider when making the
lease-or-buy decision, the best place to start is with the numbers. Do your own
calculations, factor in the intangibles and the best decision will emerge.
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