discipleofchristmysaviour
New member
Hello. Am considering buying a 3 year old car outright, or delaying that purchase by buying a lease car (new/used) for 1-3 years. I know buying outright is the most sensible for my long term wealth therefore I'd like to have an indicator of the overall extra cost of taking a lease instead of buying outright. When I say overall cost I mean the reduction in wealth once the lease is up and I've payed for the delayed outright purchase.
Outright cost is A, with estimated maintenance per year of B, expecting the car to last C years where the residual value will be D
Lease cost is E per month, maintenance of F per year. The cash I've saved by not spending A can be invested at a rate of G. The lease will last H months.
Firstly, is this the right way of thinking about this? If it is, I just need to put in some estimates for the letters and work it all out with some sensitivity analysis.
Secondly, are there any sensible online calculators/Google sheets that exist for this already?
(Unfortunately like many in this sub, much of my life decisions are rules by calculation of costs and risks, I'd like to decide based on my gut rather than head, but I'm not financially stable enough yet!)
Outright cost is A, with estimated maintenance per year of B, expecting the car to last C years where the residual value will be D
Lease cost is E per month, maintenance of F per year. The cash I've saved by not spending A can be invested at a rate of G. The lease will last H months.
Firstly, is this the right way of thinking about this? If it is, I just need to put in some estimates for the letters and work it all out with some sensitivity analysis.
Secondly, are there any sensible online calculators/Google sheets that exist for this already?
(Unfortunately like many in this sub, much of my life decisions are rules by calculation of costs and risks, I'd like to decide based on my gut rather than head, but I'm not financially stable enough yet!)