DETERMINING WHETHER TO
PURCHASE OR LEASE
MANY PEOPLE PURCHASE OR LEASE
BECAUSE OF THEIR OWN PERSONAL
BELIEFS AS TO WHICH IS BETTER.
THE GREAT MAJORITY OF
PEOPLE MAKE A DECISION
WITHOUT REALLY KNOWING
WHICH METHOD OF PAYMENT
IS THE LEAST EXPENSIVE
TO AQUIRE THE VEHICLE.
SOME PEOPLE DO NOT WANT
TO HAVE ANYTHING TO DO WITH
LEASING BECAUSE THEY SAY
“IT IS NOT MY CAR”!
IF THESE SAME PEOPLE WANT TO
TRADE IN THE VEHICLE AFTER 12-48
MONTHS THEY WILL BE UPSIDEDOWN
ON THEIR TRADE. MEANING, THEY WILL
OWE MUCH MORE MONEY TO THE BANK
THEN THE VEHICLE IS WORTH.
LET US SAY AFTER 36 MONTHS YOUR
CAR IS WORTH $10,000 AND YOU
OWE $14,000 TO THE BANK.
THIS IS NOT UNCOMMON
OTHER PEOPLE ARE SIMPLY
CONFUSED ABOUT LEASING AND REALLY
DO NOT UNDERSTAND LEASING.
THERE ARE OTHER PEOPLE WHO
PURCHASE A VEHICLE AND KEEP
IT A VERY LONG TIME.
ULTIMATELY THE CONSUMER WANTS
A FASTASTIC DEAL THAT SAVES HIM
OR HER THE MOST AMOUNT OF MONEY
THERE IS NO DEFINITIVE ANSWER
AS TO WHICH METHOD IS THE LEAST
EXPENSIVE WAY TO PAY FOR A VEHICLE
THIS IS BECAUSE REBATES AND
INTEREST RATES CONSTANTLY CHANGE.
THE REBATES ARE ALWAYS
DIFFERENT FOR EACH METHOD OF
PAYING FOR THE VEHICLE.
RETAIL FINANCE REBATE
VS.
LEASING REBATE
VS.
LOW A.P.R. FINANCING REBATE
VS.
RETAIL PURCHASE REBATE
REBATES ARE ALWAYS DIFFERENT
AMOUNTS DEPENDING ON METHOD
INTEREST RATES FOR RETAIL FINANCE
ARE DIFFERENT THEN FOR LEASING
AND BOTH ARE DIFFERENT FROM THE
LOW A.P.R. FINANCING THAT MAY
BE OFFERED.
INTEREST RATES ARE ALWAYS
DIFFERENT DEPENDING ON METHOD.
THIS IS WHY IT IS SO HARD
TO FIGURE OUT THE LEAST
EXPENSIVE WAY TO PAY
FOR A NEW VEHICLE
YOU NEED AN ADVANCED CALCULATOR
CAPABLE OF COMPUTING ALL OF THE
MONTHLY PAYMENTS WITH THE
DIFFERENT REBATES AND
INTEREST RATES
THE MEMBERS AREA
HAS SUCH A CALCULATOR
THERE IS AN EXAMPLE BELOW
THE EXAMPLE IS NON-FUNCTIONING
HOWEVER, YOU CAN CLEARLY SEE
THE RESULTS OF EACH METHOD
AND WHICH WAY IS THE LEAST
EXPENSIVE WAY TO AQUIRE
THE VEHICLE.
THIS IS A SAMPLE OF THE ACTUAL FUNCTIONING
CALCULATORS AVAILABLE IN THE MEMBERS AREA |
CALCULATE YOUR OWN MONTHLY PAYMENTS |
WHITE AREAS ARE FOR INPUT OF NUMBERS |
1 |
Upper MSRP |
$38,000 |
|
CONVERT |
CONVERT |
2 |
Lower MSRP |
$36,500 |
A.P.R. % TO A |
MONEY FACTOR |
3 |
Selling Price |
$34,900 |
MONEY FACTOR |
TO AN A.P.R. % |
4 |
Sales/Use Tax |
7.50 % |
ENTER |
ENTER |
5 |
Trade-in value |
$0 |
A.P.R. % |
MONEY FACTOR |
6 |
Balance owed |
$0 |
BELOW |
BELOW |
7 |
Cash Down |
$0 |
5.16 % |
.00299 |
|
|
|
MONEY FACTOR |
A.P.R. % |
|
|
|
LISTED BELOW |
LISTED BELOW |
|
|
|
.00215 |
7.18 % |
|
|
|
INSERT LINE #9 |
F.Y.I. ONLY |
|
#1 LEASING |
INPUT VALUE |
|
ALL CALCULATIONS ARE AUTO-MATIC. RESULT FIELD IS FAR RIGHT |
8 |
Bank Fee |
$595 |
Interest Charged |
$4,202.82 |
9 |
Money Factor |
.002150 |
Lease Paymnt + tax |
$463.97 |
10 |
Lease Term |
36 |
Upfront Sales TAX |
$1,409.84 |
11 |
Residual % |
55 % |
or TAX in Payment |
$506.16 |
12 |
Lease Rebate |
$500 |
# of Months |
36 |
13 |
Private rebate |
$1,000 |
Out of Pocket |
$1,058.97 |
14 |
Sec. Deposit |
$0 |
Total Cost to Lease |
$19,280.75 |
|
|
|
Purchase Option |
$20,900.00 |
|
|
|
Tax on Purchase opt |
$1,567.50 |
|
|
|
Total if Purchased |
$41,748.25 |
“OUT OF POCKET” DOES NOT INCLUDE M.V. & DEALER DOC FEE |
#2 FINANCE |
INPUT
VALUE |
|
ALL CALCULATIONS ARE AUTO-MATIC. RESULT FIELD IS FAR RIGHT |
15 |
Interest Rate |
6.99 % |
Interest Charged |
$7,955.37 |
16 |
# of Months |
72 |
Finance Paymnt+Tax |
$552.23 |
17 |
Retail Rebate |
$1,500 |
Upfront Sales TAX |
$2,617.50 |
18 |
Private rebate |
$1,000 |
or TAX in Payment |
$596.85 |
|
|
|
# of Months |
72 |
|
|
|
Total Cost to Finance |
$42,972.87 |
|
|
|
Out of Pocket |
$0 |
“OUT OF POCKET” DOES NOT INCLUDE M.V. & DEALER DOC FEE |
#3 LOW APR |
INPUT
VALUE |
|
ALL CALCULATIONS ARE AUTO-MATIC. RESULT FIELD IS FAR RIGHT |
19 |
LOW APR % |
0.90 % |
Interest Charged |
$684.19 |
20 |
# of MONTHS |
48 |
Low APR Paymt+Tax |
$729.91 |
21 |
APR Rebate |
$0 |
Upfront Sales TAX |
$2,617.50 |
22 |
Private rebate |
$500 |
or TAX in Payment |
$785.45 |
|
|
|
# of Months |
48 |
|
|
|
Total Cost Low APR |
$37,701.69 |
|
|
|
Out of Pocket |
$0 |
“OUT OF POCKET” DOES NOT INCLUDE M.V. & DEALER DOC FEE |
#4 CASH VS. |
INPUT VALUE |
|
ALL CALCULATIONS ARE AUTO-MATIC. RESULT FIELD IS FAR RIGHT |
23 |
Interest Rate
for Certificate
of Deposit |
3.20 % |
Cash Price after rebate |
$32,400.00 |
|
|
Upfront Sales TAX |
$2,617.50 |
|
|
Total Cost |
$35,017.50 |
|
|
|
Interest Charged |
$0 |
|
|
|
Out of Pocket |
$35,017.50 |
“OUT OF POCKET” DOES NOT INCLUDE M.V. & DEALER DOC FEE |
PAYING CASH VS. ALL METHODS |
IF YOU CAN PAY CASH, THEN COMPARE THE
TOTAL COST OF EACH METHOD LESS THE
INTEREST EARNED ON A CERTIFICATE OF
DEPOSIT TO DETERMINE THE LEAST
EXPENSIVE WAY TO AQUIRE THE VEHICLE. |
$35,017.50
in a Certificate
of Deposit |
36
Months |
48
Months |
60
Months |
72
Months |
Compound Interest |
$4,098.85 |
$5,561.87 |
$7,076.09 |
$8,643.31 |
CD Value at Maturity |
$39,116.35 |
$40,579.37 |
$42,093.59 |
$43,660.81 |
IF YOU CAN NOT PAY CASH, THEN COMPARE
THE TOTAL COST OF EACH METHOD TO
DETERMINE THE LEAST EXPENSIVE
WAY TO AQUIRE THE VEHICLE. |
VERY IMPORTANT
IF YOU PAY CASH YOU ARE EXPOSED
TO A VERY LARGE RISK OF LOSING A LARGE
AMOUNT OF YOUR MONEY.
WHEN YOU DRIVE OUT OF THE SHOWROOM
YOUR VEHICLE DEPRECIATES A TREMENDOUS
AMOUNT OF MONEY AND CONTINUES TO
DEPRECIATE AT A VERY FAST RATE
IN THE FIRST 3 YEARS.
MOST VEHICLES ARE WORTH
ONLY 50% OR LESS
OF THEIR ORIGINAL VALUE
AFTER ONLY 3 YEARS.
IF YOUR VEHICLE IS
STOLEN AND NOT RECOVERED OR
TOTALLED BECAUSE OF ACCIDENT
YOU WILL LOSE A LARGE
AMOUNT OF MONEY!
GAP INSURANCE WILL PROTECT YOUR INVESTMENT IN YOUR VEHICLE WHILE
ALL OF YOUR MONEY WORKS
FOR YOU AT THE BANK EARNING
COMPOUND INTEREST. |
THIS WEBSITE DEFINITELY
SAVES YOU MONEY !
