Quote:
Originally Posted by onewhippedpuppy
What about paying cash?  |
Cash still has an opportunity cost. Having your cash tied up in a depreciating 'asset' might be a dumb move. And YOU take the risk of resale value AND all of the sales tax liability. And minimized write-off for business use.
Cash is used when you have no other use for your money. Why not borrow at 2-7% when your cash can help you make money? Leverage at someone else's expense.
Do not discount the guaranteed future value (residual). You can save thousands when the market falls away. If you paid cash (or bought it with a loan), you take the loss. When you leased, the lease company took the hit. 99% of leases allow the original leasee the first right to purchase for the residual. So if it's too low, buy it and you win. If it's too high, hand them the keys and say: "sucker!" Either way, you win.