| Arkay |
02-08-2008 05:05 PM |
Quote:
Originally Posted by cross5x
But then again, if i had lease the car instead of buying and reselling it after 3-4 years, I would be paying more if I had taken good care of the car and it is still in mint condition, right? I will not have to pay the interest rate of the lease contract.
|
I'm not completely clear on your statement - but assuming you mean that if you buy the car with cash and keep it in good shape and then sell it, you would not be paying the interest on the lease or from finance, then you are correct, you won't pay any interest.
But the other side of the equation is the opportunity cost lost on the use of the cash by paying it up front - could you have invested or otherwise used the cash that gains more than 6.5% per annum? If the answer is yes, then the opportunity cost to gain an ROI on that money would be lost - which would be the same as paying interest. |
