Buy vs. Lease
|Plan Duration||9 years|
|Buy Net||Buy Net is calculated by adding the finance down payment, finance payments, repairs and the car value.|
|Buy Spent||Buy Spent is a running total calculated by adding the finance down payment and monthly finance payments.|
|Lease Net||Lease Net is calculated by adding lease down payments and lease payments. Lease Net does not include any maintenance or repairs, it is assumed a three year lease will come with a bumper to bumper, 0 scheduled maintenance warranty.|
|Lease Spent||Lease Spent is a running total calculated by adding the lease down payments and monthly lease payments. Each lease start, the lease down payment is added to the running total.|
|Money Factor||When leasing a car, the Money Factor is the cost to "rent" the car. This will vary based on dealer pricing.|
|Recurring||When adding a maintenance repair, it can be set as recurring. For example: An oil change occurs at month 12. Check Recurring to have it added every 12 months.|
The value of a car goes down over time. The residual value is the estimated wholesale price at the end of three years. The calculator above works with three year leases. So, the RV% should be about 57%. This will vary based on dealer pricing.
For the chart above, the last car value is used. This causes a straight line for the depreciation.