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Old 03-03-2013, 02:35 PM   #25
asting
Focus Enthusiast
 
Join Date: Apr 2012
Fan#: 98342
Location: Cleveland, OH
What I Drive: 2012, Tux Blk Met Focus 5d Sport

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Quote:
Originally Posted by Rogerschro View Post
Had I done a one year lease, I would have paid about the same, so yes, you are correct. BUT, I think it was a good deal, and since it is my choice and I agreed with the terms, it is a good deal for me. Someone else may not think so but at the end, it is each of our choices we live with.
I'm not trying to tell you what to do, but there's very little room for opinions in finance (as paying less for the EXACT same thing is objectively better).

Depending on your options, and what you were offered you did not do well.

Most leases have a fixed monthly payment, however the depreciation rate on most autos is very heavily front weighted. That is, you experience a 25% drop in value within the first year, and the rate of depreciation decreases over the life of the vehicle.

Fixed lease payments don't cover the drop in value the first year, however they make up for it in later years by charging you more than the monthly value decrease of the car. By trading in after one year, you took the largest hit for depreciation and "paid" way more than you would for a lease.

If this doesn't make sense I can make a graph showing the linear, vs exponential, concave up decreasing costs under each scenario.
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