**DONOTDELETE**
08-08-2002, 01:12 PM
dang.. i was looking more into the details of leasing vs financing.. and lease albeit they give a lower monthly payment, the cost is high for leases.
with leasing (as with financing) you pay interest on the entire vehicle over the leasing/financing term. But the difference is that you simply add the interest to the depreciation value over the term (reason for being cheaper monthly). So when it comes to the end of a lease, you have to pay interest AGAIN on the remaining residual (if you plan to finance it). Brutal, eh?
with leasing (as with financing) you pay interest on the entire vehicle over the leasing/financing term. But the difference is that you simply add the interest to the depreciation value over the term (reason for being cheaper monthly). So when it comes to the end of a lease, you have to pay interest AGAIN on the remaining residual (if you plan to finance it). Brutal, eh?