Am I calculating lease verses own correct??

[kelly237]

Originally Posted by sean98125

Ron, what do you figures show if she owns a car for a longer period of time than three years? For example, what if she trades her $20K SUV in on an almost new $20K car and keeps it for 12-15 years? There's little or no out of pocket costs, no monthly payments, and better fuel economy. She would lose out on the potential investment value of the $20K, but she also doesn't have the $10,800 in lease costs over three years and the need to either extend the cost to keep that car or to buy a new one.

I do think that is a way to reduce yearly cost. That might be a
great option.

My concerns about doing that are that
1) much better MPG autos are right around the corner I beleive(not to mention alternate fuel autos)
2) I am a safety nut so I have (and will always want) the latest and best safety features like side air bags/stability control and I imagine new and improved features will keep coming every few years.

I could care less about most luxury features but want the safety
features.

[spinach]

Originally Posted by kelly237

I have been caculating whether we would be better off selling our car and leasing and I was hoping someone could tell me if I am thinking correctly about the costs of owning verses leasing.
We own outright a suv worth 20K that gets 20 MPG.
It seems when I add :
1)lost interest if 20 K were invested, (166/month)
2) 3k/year depreciation on suv, (250/month)
3) $100 -$200 extra gas suv costs because of MPG
4) possible repair/maintenance costs
.... I am getting over $500 (even using 100 gas figure)

Why wouldn't it be better to lease something for 300/month
that gets 30 MPG or better ?

Another reason leasing makes sense to me is that auto companies are going to be coming out with much better MPG autos making the lower MPG cars depreciate faster.

My goal is not to be in more car than I can afford, but to be as frugal as I can be while still driving a car with the latest safety features.

Please someone tell me if my post makes sense.

Leasing is never an affordable option. Go out and buy a decent used Honda Civic if you want to save money. Never buy or lease a new car unless you have money to burn.

spinach.