In terms of payment calculation, leasing is very similar to purchasing a car or a truck. The formula is:

Purchasing : cost of car + interest / term of the loan

Leasing : cost of car + interest – expected resale value / term of the lease

So as far as payment calculation goes, there really is not much of a difference if you purchase or lease, except that you don’t really pay for the whole value of the car. Technically, you are paying for the car value that depreciates during the term of the lease. However, the dealer can make money by keeping the MSRP (Manufacturer’s Suggested Retail Price) and broadening the difference between the price of the “new” vehicle and the price of that vehicle at the end of the term. Also, dealers can sell a vehicle as a certified pre-owned once they get the leased vehicle back to their inventory. A dealer sells one vehicle thrice: as a lease, as a certified pre-owned vehicle or used vehicle, and as an out-and-out used vehicle.

So the dealers make money out of it. You, on the other hand, can benefit on a lease depending on how you use the vehicle. If you travel a lot, then leasing is not the best option for you because of the mileage limit. If you are not a tidy car owner, leasing is not good for you either. You will only find your self paying off cleanup fees. However, if you are the type who is always in the market for new things, leasing can be an advantage to you. You can always re-lease or trade your vehicle in exchange of something new.
If you decide to purchase the vehicle by the end of the leasing term, you’ll only pay a smaller amount compared to the market price of the vehicle at the time you purchased it. Also, consider the tax benefits. Since the car is not your property, you won’t be paying for the whole car in terms of sales tax.

Tags: car locator service, preowned trucks, nationwide vehicle delivery

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