“If the item you are buying appreciates in value, buy it and own as much of it as you can. If the Item depreciates, lease it, because the use value is the same and your money is more valuable elsewhere” – J. Paul Getty – circa 1929
‘Elsewhere’ is meant to say anywhere in your financial life that either earns or saves money for you. It could be an appreciating asset like your home or land, stocks and bonds, but also could be simply applied to a charge-card balance or spent on other goods and services. To exemplify, we apply an earning rate of 10% APR, easily obtainable for secure investments like long-term CDs, to the savings of each of the categories.
Applying interest to the initial finance savings makes it worth $486.58 by the end of the driving term. The monthly savings earned by leasing, applied in a series of equal deposits, totals $11,069.63 by the end of the driving term.
During the ‘driving term’, $10,583.05 is saved overall by leasing and the value received is even! If you lease, you can buy it, sell it, trade it in, or walk away. With a lease you also have more flexibility to trade earlier and avoid maintenance and repairs.
If you want to own your vehicle, $2,032.62 is saved by leasing and purchasing at lease end. A fixed purchase option is included in every true lease. If you take pride in ownership, this is by far the best, safest, and least costly way to get there!
Other Benefits Enjoyed by True Lease Drivers:
Prestige – The financially wise lease their automobiles.
Better income tax write-offs for business use drivers – Request a free personal analysis.
Flexibility to trade – Inquire about early termination options and procedures available only with a true lease.
Lower or eliminated maintenance costs – Trade vehicles before they occur.
GAP protection – Pays any deficit occurring from the difference between balance owed and amount paid by your physical damage insurer in the event of a total loss.
Fixed purchase option – Allows for equity recovery at early or end-of-term lease termination and/or ownership.
Guaranteed future value – Protects you from abnormal depreciation due to market conditions, excessive recalls, etcetera.
Safety from legal aggression – The vehicle is titled to the lessor so you are protected from law suits filed against the owner of a vehicle involved.