How does this make sense? If you take out a loan for $22500 after three years, you'll have less than $12k left to pay...there's no guarantee that the GTO will depreciate that rapidly. If you buy you maintain residual equity, granted, the monthly payments will be higher with loan vs lease, but in my opinion, the equity is worth it. If you did want to keep it (say it doesn't depreciate like you think) you sure wouldn't have to pay the $18500 buyout, and if you sell you should be able to recoup some money.Tom said:I urge you as a CPA not to buy the car but to lease it, pound the snot out of it for three years then give it back.
I'm not sure what you mean by a guaranteed "trade in" value...you either buy or walk away. No residual equity, you essentially rented the car for 3 years.Tom said:Bottom line is your payments are less leasing and you are guaranteed a "trade in " value at the end of the term.
How do you mean you won't get creamed on a future trade in...I thought buying or leasing gives no guarantee of trade-in value in 3 years...I'm not clear on how the trade-in works at the end of the lease.Tom said:If you like the car buy it. The difference in interest rates is about 1%. If you decide to get an AWD 07 you won't get creamed on the trade in.