Ok, I was reading the thread on lease vs. finance, so I did the following (this is also posted in the lease vs finance thread, but I thought it merited its own thread)

This seems too good to be true, please prove me wrong if you can...

I was curious if I was upside down in my financing....

I bought a used 03.5 G35 w/ 14,000 miles for $27,400 or $29,000 out the door.
Put a downpmnt of about $4500
I financed $24,500 at 3.75% for 66 mo @ $402/mo, total loan cost= $26,532

I have made 17 payments=$6800 paid

Balance of Loan=26,500 - 6800 = $19700

Edmunds estimated resale value is: $22,400
That leaves me with $2700 if I sell it today...

So, I with my I started out with $4500 in my pocket before I bought, meaning I have lost $1800. I have had the car for 17 months, so I have paid about $105/ month to drive my G (not including costs like gas, maintenance, or insurance that you will pay on all cars). I am ok with paying about a $100/month to drive my car...

Now if I had leased, wouldn't I be paying something like $450-470 to drive my car (albeit brand new), probably would have put down a deposit, PLUS pay gap insurance, and I would still have the same gas, insurance, and maintenance to pay.

Someone tell me if I did some funny Math but, to me it looks like in my situation,
Own=$105/month
Lease=$500+/month


g4ian

 

- $4500 downpayment
- $6832 in payments
+ $2700 positive equity if sold today
_____________________
$8,632 (total of downpayment, payments, less equity)

Monthly cost = $507 to drive your car for 17 months (plus insurance, gas, etc)

 

The rate at which you pay off the car and it depreciates are not the same, so the math will pretty much always be changing.

 

Comapring brand new lease to used purchase seems pointless...

 

Someone said it in another thread, basically the biggest difference between the 2 involves time.

Shorter periods (<3yrs) of time favor leases.
Longer periods favor purchases.