You are correct, in that scenario with normal parameters, yes, the lease would cost more, but that's not the end of the math.So take the exact vehicle...one option you lease (and buy at the end of your lease), the other option you buy (aka loan) front the begining.
When it is all said and done and the vehicle is fully purchased which option was cheaper.
In other words, my understanding is that a lease will cost you more overall if you keep the vehicle at least till it's paid off.
Think about these things. If you lease for 36 months, then finance for another 36-60 months, sure, that's not smart money and the back end is fraught with risk when the vehicle is worth less (in theory).
However, if you lease for 36 months, then finance for 24-36 with no down payments, you actually come out spending about the same if not less.
That said, I did not factor in car payment levels here. Depending on someone's financial situation, the car payment could be prohibitive.
For instance, my Bronco financed at maybe 2% or even 3% if rates go up, for 60 months will cost $1026.00 per month. This is on a $61K Bronco with taxes. To many guys, that's far too much to pay for a car payment. Doesn't bother me in my situation, but that's not important here, nor does it sound good. In this situation, even if you don't have much of a down payment, maybe leasing for 36 months, then financing for 36 more would help since the lease payment would drop to around $840.00 which is still a lot, but it's a $61K purchase.
Any $1000 in down payment is roughly $20 per month off. So, although a payment of $1000 is eye watering for a Ford, parting with $5000 or more takes away your liquidity and puts it into a very risky vehicle. For most normal people, having $5000 or more in cash for whatever you may need it to do for your car is worth more than saving $100 or so per month.
Again, this is crazy talk because crossing the $1000 mark has a mental element that many can't accept; and I understand this fully.
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