JeffDG
Touchdown! Greaser!
The thing about leasing is that you are paying interest on money that you have no intention of paying the principal on.
The way a lease is worked out is kind of like this:
1) You buy a car for $30,000
2) The leasing company promises to buy the car back from you in 2 years for $20,000
3) Over those 2 years, you pay the leasing company interest on the $30,000, and pay off $10,000 in principal
4) At the end of the lease, the leasing company buys the car back from you clearing the remaining $20,000 principal
The way a lease is worked out is kind of like this:
1) You buy a car for $30,000
2) The leasing company promises to buy the car back from you in 2 years for $20,000
3) Over those 2 years, you pay the leasing company interest on the $30,000, and pay off $10,000 in principal
4) At the end of the lease, the leasing company buys the car back from you clearing the remaining $20,000 principal