Volt LT average monthly lease is currently around $220/mo. Total lease cost 220 x 36 = $8K.
But what if, I buy instead of lease?
Msrp : 34950
Selling price : 30000 (14% off)
Rebates : 13900 (Loyalty 1.5k+ Conquest $500 + cc for retail 2K+ fed 7.5K + NY $1.7K+ Costco $700)
Net amount: 16100
I only paid $16K for a $35K volt or discount of 55%! A loan of 16K+tax+fees is around $320/mo. After 3 years, I would have paid a total of $11.5k and loan payoff will be $7,5K. If car can be sold for $15K which is 2K below gm’s inflated rv, then there’s a $7.5K equity., Net finance cost will just be $4K, instead of $8K lease cost. So its like I am leasing a volt for $110/mo. Am I missing something?
Some rebates are not taxed. And actually I included $2K of tax in the $320 monthly loan computation. And since this is a loan, there’s no acquisition fee ($650?) or disposition fee (lease return).
Opportunity cost of the money used to make the higher payment. Also, if the car is wrecked it might diminish the value another $500 to $1000, or worse the car is totaled and the insurance company screws you out of any equity you thought you had. Personally I’d just lease it and not jack around with selling it and hoping to make the money back.
It is opportunity cost. Its like saying why buy a house when you dont know if your roof is going to leak in 5 yeats and cost you $20k and just rent since landlord takes care of all of that.
House apprexiates? Maybe in california but not in my area. And i know if you heard that there is a limit now on how much you can write off. Thanks to our president. When house appreciates, taxes increase as well. Home ownership is forced savings and being able to do what ever you want with the house. It is really very similar to car ownership or leasing. Except that when you sell your car, you dont pay simeone 3-6% fee (realtor fee+tax,etc)
I am for house ownership but not because it appreciates.
In the long term it usually always goes up, they aren’t making any more land. It’s all about location, my dad was in real estate and that was always his number 1 rule, location location location. All markets have their down turns, but if you’re in the right location the down side is minimized.
