The difference between LEASING a car and BUYING a car that the dealership hides from you:
🔴 LEASING
You put $3,000 down.
You pay $450/month for 3 years.
You have a strict mileage limit (10k miles/year).
You own nothing at the end.
🟢 BUYING ↓
The final math.
Lease:
Down payment: $3,000.
Monthly: $450 x 36 = $16,200.
Wear and tear: $1,000.
Mileage penalty: $1,500.
Total spent: $21,700. Own nothing.
Buy:
Down payment: $3,000.
Monthly: $650 x 60 = $39,000.
Total spent: **$42,000**. Own a car worth $15,000.
The lease is cheaper upfront. But the buyer has a $15,000 asset at the end. The leaseholder has nothing.
When leasing actually makes sense.
Leasing is only a good deal if you can write it off. If you are a business owner and use the car 100% for work, you can deduct the lease payments on your taxes.
If you are a regular employee driving to and from an office, you can't deduct it. You are just renting a depreciating asset.
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