Click Banner for Details on this Classified

Date: Tue, 22 Feb 2000 16:24:59 GMT
From: Kalman Rubinson <>
Subject: Re: leasing a saab

qqq <qqqnopsamcom> wrote: > I don't mean to jump into this discussion when I wasn't part of it, but I > just wanted to correct this leasing explanation. > Actually, what happens in a lease is the leasing company decides how much > the car will be worth in a given period of time. For example, you lease a > 30,000 (the capitalized cost) car for three years, they may decide that > after three years the car will be worth 15,000 (the residual value). > So, now you're responsible to pay 15,000 for your "rental" of the car, plus > interest (money factor in lease terms). So, you're essentially financing > 15,000 over three years, instead of say, 30,000 over five years. Actually, you are still financing $30K over 3 years but only amortising $15K. Does anyone think the bank is letting you 'borrow' the other half of the value without paying interest? Kal

Return to Main Index

The content on this site may not be republished without permission. Copyright © 1988-2019 - The Saab Network -
For usage guidelines, see the Mission and Purpose Page.
[Contact | Site Map | on Facebook | on Twitter | Shop Amazon via TSN | Site Donations]