Los Angeles Auto Broker Explains Merits Of Leasing New Car Versus Buying
David Yee, who is an auto broker serving Los Angeles and Southern California, has a great example on his website when it makes sense to lease a new car versus purchasing a new car, SUV or truck. He uses the example of a $50,000 BMW with no money down.
If you would like to contact David then you may call or text him at (323) 723-4227 (4CAR).
Here is his example:
The example below will illustrate the cost savings you can earn from leasing as opposed to vehicle buying. The table uses a 3- and 6-year time frame with a $50,000 BMW and $0 down transactions. With options to finance or lease, notice how much less vehicle leaseholders pay in terms of cost of ownership, taxes paid, and interest paid.
There are lots of variables when it comes to leases but simplicity this will have to do. Below are options to finance or lease this BMW. Take notice of the cost of ownership, taxes paid and total interest paid.
Lease or Finance Years of Ownership Payments Monthly payments w/tax Details Total payments including tax Cost of ownership per year Total Tax paid Total Interest paid Lease 3 36 $625 $625 x 36 mo $22,500 $7,500 $2,520 Incl. Lease (2x) 3yr leases 72 $625 $625 x 36 mo $45,000 $7,500 $5,040 Incl. Finance 3 36 $1,624 $50,000×10% tax+4% interest $58,457 $19,486 $5,000 $3,678 Finance 6 72 $867 $50,000×10% tax +4.25% interest $62,407 $10,401 $5,000 $7,407 Finance 8 72 $867 $50,000×10% tax +4.25% interest $62,407 $7,801 $5,000 $7,407 Finance *9 72 $867 $50,000×10% tax +4.25% interest $62,407 $6,934 $5,000 $7,407