Originally Posted by runutzzzzz
Those #'s don't make sense. If the car is 70K MSRP your "rent" over 3 years is about 10,700 with 0 down, this is MF of .00275. If you put $35,000 down your "rent" would be about $7,200. That diff is only $3500.
You would make more putting down multiple security deposits and putting the remanding ~$28,000 in a CD. This would also take away your risk of losing money incase of total loss.
The car was $70,327 including gas guzzler. Then I have Utah state tax at 6.34% and dealer fees. I was told that to completely pay the car forward for 4 years at 15,000/year mileage, I would be right around $42,000.
My point of the $35,000 is that I was told that if I paid the lease forward, I would save over $4000 then if I just put down $7,000 and then paid a monthly lease payment. I don't know that there are any investments that would pay over $4000 on $35,000 in 3 years that are not risky. Plus ~ $1,100 would be taken from the investment account monthly.
I think what I am going to do is sit down with the dealer and crunch all of the numbers when I actually can get the sedan w/DCT in a couple of months. It is great to get everyone's input before I make the actual decision.
I don't know what you mean by multiple security deposists.