<BLOCKQUOTE class="ip-ubbcode-quote"><div class="ip-ubbcode-quote-title">quote:</div><div class="ip-ubbcode-quote-content">At 36 payments you are paying $23,040. Using your $37,000 total cost, your residual is only $13,960 or 38%????? </div></BLOCKQUOTE>
While the rate I was quoted today might have been too high, you can't use this equation: $37K - (Payment x 36 months) = Residual.
The dealership is loaning you money, so there is an interest rate (borrowing cost) included in the payment quote. For 36 months, the residual is probably closer to 50% or $18.5K (let's hope), so you'd be paying $4540 in interest over the term.
However, in every scenario I've done thus far, buying seems to be the better option.
|