Hello,
I am using the calculator to see the difference between a lease and a loan for a Tesla Model S.
Question: The calculator outputs positive vehicle equity in parenthesis: Positive Vehicle Equity: ($18,741). In accounting, usually parenthesis mean negative, not positive. Can someone tell me how this field is calculated?
Example:
Total Cost:
$49,417
➣ Breakdown
Principal Paid: $42,414
Interest Paid: $9,744
Trade-in Equity: $16,000
Positive Vehicle Equity: ($18,741)
Only speculation here so ideally someone that’s more confident in the answer will be along shortly. With the trade in equity, is that reducing the amount you are taxed on the new purchase and the $2,741 is then added to $16,000 and $18,741 is subtracted from purchase price to generate a starting loan balance?
Yes, good question - does it take into account the tax reduction since the final purchase price is lower? Not sure how this works.
Can you post a link to your calculator…
This threw me off as well. I think it’s negative to get you back to your total cost of ownership.
Here it is (some numbers changed, I kept playing around with it)