Does US Bank offer a one pay option on leases? If so is it advantageous?
Someone on here might know but I would suggest asking US Bank that question. As far as advantageous, I guess it depends on what you mean and your personal situation.
For example - one time lease of $20k. If you put that money into the stock market at an average return rate over 3 years you’re losing $5,900 in interest. If the one time pay is saving you more than $5,900 you might think there is value. Also, you need to consider not having that liquid $20kish available to you. If it’s in the market, you can gain access to the money in a few days. Some people would prefer to have that. Some people find peace of mind not having a monthly payment. So, it’s very situation dependent and there’s a few variables to consider. Good luck.
Thank you I appreciate the thoughtful response
Us bank doesn’t offer a 1 pay option.
3 Likes
It never has
1 Like
You can’t compare hypothetical stock gains to guaranteed msd or one pay savings. There’s several reasons not to do a one pay, lost stock market gains is def not one of them. Msds are typically the best tool to use and usbank doesn’t allow them or one pays. With a one pay the main issue is risk of the vehicle being totaled and losing all or most of your investment due to vehicle depreciation. The bank is covered by gap insurance not the consumer.
I understand what you’re saying but there is nothing hypothetical about the stock market averaging nearly 10-11% per year since it’s inception. That is a fact. My example was based on a conservative 9%. The stock market was just one example of any investment tool. Feel free to plug in any other investment that you’re comfortable with. The point was that you need to compare that lost interest to the amount you are saving by using a one pay.
Same theory applies to MSD. If it’s saving you $50 per month on your lease but you are losing $75 per month on interest that you could be gaining from any investment of your choice, is there value for you? Keeping in mind you don’t have access to the capital for 3 years (emergency comes up, better investment, world is ending so you need TP for some reason, guns and lysol wipes, etc.)
Asked and answered. Also, we don’t need yet another flawed argument against MSD. Everything Jsmooth said has been debunked before.