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Pastimes : Clown-Free Zone... sorry, no clowns allowed
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To: maceng2 who wrote (262990)10/7/2003 8:11:07 PM
From: orkrious  Read Replies (2) of 436258
 
okay all you finance whizzes, help me out with this.

the last three cars I've had I've paid cash for. I don't like debt. Prior to that I leased cars.

I'm getting my wife a new Audi A4. After tax, it's roughly $39k. The lease payment is $571/month, and the finance cost of the lease works out to an IRR of roughly 3%.

I hate not owning the car, but I can buy 1000 shares of NEM in its place. The downside is that I will have to revisit the issue in three years and decide whether or not it's worth purchasing for the residual value or buying/leasing something new. The upside is (1) if the cars is a POS we turn it in and walk away and (2) for three percent in US$ we get 1000 NEM.

Am I missing something here or is leasing a no brainer?
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