But why would you pay almost double the interest by taking the loan from GM when you can pay 5% from a local credit union and probably still come out on top. If you have $8k to drop on the car you can lower your payment on a purchase the same way as the lease.
Okay, let’s split the baby. 2025 Tahoe RST right?
You can do a balloon loan on this through Hanscom FCU in Upstate NY, you get that ‘low’ payment, and you get the benefits of financing (lower rate, easier exercise option), with the flexibility to walk away at lease end.
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Can you show me “mathematically” how financing is better?
That’s what I’m trying to compare.
I didn’t want to get into GM’s serial redesigning… but when is the next one due? '26? ha
Cool!!! Now we’re taking…
Let me do more research here.
Ty!!!
@HersheySweet already did that. Twice.
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Actually, That payment is $80.00 MORE a month than what the dealer is offering.
That is demonstrating a balloon loan which means you are paying down the interest over the term and then owe the principle at the end, at which point you would be selling the car or you just pay it off. It is not a comparison of a monthly payment for a fully financed car vs. a lease which is just a loan on the 36 month depreciation.
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There are a ton of vehicles where we could show you that leasing is the only way to go. For the Tahoe it’s pretty simple. You either have the coin to lease a new one of these every 3 years and don’t give a crap. Or you finance it and drive it till the wheels fall off.
Also cross shop the Yukon and make sure you don’t qualify for GM supplier.
Ok, this is the BEST answer yet… Ty!!
I do have the bread and will lease something else in 3 years.
I was just wondering IF the dealer was fken me.
Thx for the clarity!!!
You left out the opportunity cost of capital that is spent on a loan payment that includes principal + interest that is higher than the comparable lease payment on the same vehicle.
Saying “equity you get back” is missing the point that the equity you’re getting back is coming from those principal pay downs.
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$8,000 isn’t changing my my retirement on bit.
Thx though.
Nobody on this site is going to change your retirement. So why even bother asking your original question? Just sign whatever tickles your fancy since $8k grand is nothing to you.
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Perhaps you didn’t see the original question that I asked?
I was asking of the dealer was screwing me.
Yeah, and everyone has told you the dealer was screwing you. Your post was already tagged as solved.
I’m responding to @HersheySweet to point out he’s missing the economic value of the higher loan payments vs the lease option in his example.
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NO ONE SAID the dealer is screwing me…
Everyone said Chevrolet is screwing everyone that buys a Tahoe.
Sorry you don’t know the difference, smh.
My guy, it’s Monday morning. Why you so mad?
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I’m only annoyed with YOU for twisting words.
Everyone else was helpful.
I see your point, but even on the disadvantageous 3-year term, he’s going to come out relatively ahead.
The economic disadvantage of the higher loan payments over time is (valued as an annuity) at 11,335.26 at a 7% interest rate in present value terms.
Getting back 11k back valued at 8979 present day again using a 7% cost of capital, plus trade in tax credits, an indeterminate value from flexibility, and mind you this is extremely conservative for the benefit of the argument.
Ok then, I agree with @IAC_Nick - don’t sign whatever lease was being presented to you at the start of this thread.