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A real life scenario of what Leasing
can save you!
Leasing your next luxury auto instead of Buying may save you $200, $300
or more each month!
If you: Like a new car every few years, take good care of your vehicles,
do not need excessive annual mileage, and don't feel the need to
customize your car. Then leasing may be best for you.
Example:
You want a $40,000 luxury car or SUV
If you buy you pay financing and interest on $40,000
If you lease you pay financing on about $20,000
If you buy you pay taxes on $40,000
If you lease (in most states) you pay taxes on about $20,000
If you lease for your business your
payments may be tax deductible saving another 28% to 40% of Payments!
Here are the numbers:
The Loan is $40,000, 48 months, 9% interest, $0 down.
Payments are $1055.12/month with 6% state tax included.
The Lease is $40,000, 48 months, 9% interest, $0 down, with a residual
of 50%.
Payments are $680.17/month with 6% state tax included.
Savings is $416.67/month!
If your car or SUV is used for your business there may be further
savings in the form of tax deductions for all or part of your monthly
payments.
If your vehicle is used exclusively for business and you are in the $28%
bracket your net after tax payments will be $489.72/month.
Likewise, if you are in the 40% tax bracket your net after tax payments
will be $408.10/month.
Saving $565 to $647/month after taxes!
This is a simplified comparison that does not take into account the
vehicle that is owned outright at the end of a buy, or the lump sum that
can be accumulated by investing all or part of the monthly lease payment
savings during the 48 month course of the lease. The focus of this
comparison is on your monthly payments.
Leasing is not for everyone, but if
you fit the profile it truly can save you $200, $300, $500/month or more
on your next luxury car or SUV.
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