Buying versus Leasing a Defender 110 2.0 SE   Two types of…

Buying versus Leasing a Defender 110 2.0 SE   Two types of financing options are offered for the Defender 110 2.0 SE 2025 by a local bank, as shown in the following table. The calculations are based on special financing programs available at participating dealers for a limited time. For each option, you pay the same amount for license, title, registration fees, taxes, and insurance, so they are irrelevant in our comparison. For the lease option, the lessee must come up with 2499 K.D at signing. This cash due at signing includes the first month’s lease payment of 295 K.D and a 2204 K.D administrative fee. No security deposit is required. However, a 400 K.D disposition fee is due at lease end. The lessee has the option to purchase the vehicle at lease end for 21000 K.D. The lessee is also responsible for excessive wear and use. If your earning interest rate is 7% (APR), which financing option is a better choice?   Option 1: Buy Option 2: Lease Price 27200 K.D 27200 K.D Down Payment 4019 K.D 0 K.D APR (%) 7% 7% Monthly Payment 852 K.D 295 K.D Length 24 24 Fees 2204 K.D Cash due Lease End 400 K.D Purchase Option at lease end 21000 K.D Cash due at signing 4019 K.D 2499 K.D
Continue reading “Buying versus Leasing a Defender 110 2.0 SE   Two types of…”…