- First Name
- Todd
- Joined
- Sep 30, 2019
- Threads
- 4
- Messages
- 858
- Reaction score
- 1,323
- Location
- Concord, CA
- Vehicle(s)
- 2012 Ford Mustang GT Premium; 1994 Bronco XLT
- Your Bronco Model
- Badlands
- Banned
- #91
Unfortunately gas prices will most likely hit $5.00 a gallon before 4 years in some parts of the country under the new administration. Maybe $7.00 a gallon in California?What Trap? Just trying to help people understand they have choices at lease end. So the bank sets the residual too low. Buying or leasing, a used car is worth what it is worth. Lease "A" simply turns the car in at the end -walks way and thus overpays. Lease "B" sells at market price and recaptures the overpayment on the depreciation fee. What about the other part of the lease payment -the finance fee? With the Bronco money factor rates we are talking about $ 2.08 a month per $1000. So inaddition to a $4000 recapture you would also gain $8.32 month.
On the hand, it can go south for the bank. What's the residual against market on an Bronco if gas goes to $5.00 in 4 years?
In the ending, it is all about the selling price and money factor?
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