The Edmond Sun

Features

March 27, 2013

The pros and cons of leasing a car

(Continued)

We'll start with an expensive car, like the Audi S5 coupe.

To lease the vehicle, the dealer determines how much depreciation should occur from the $50,900 MSRP when it's in the showroom until you return it three years later. The dealer applies an interest rate and amortization schedule, adds in some other fees and charges, and comes up with a monthly payment.

To purchase the same car a consumer would have to put down as much as $10,000, with the monthly payment reflecting the full value of the vehicle.

For that reason the buyer would likely be making payments longer than three years. Some payment plans for a car in this price range could easily extend six or seven years.

The Chevrolet Cruz, with an MSRP of $17,130, would most likely carry a much smaller lease payment but would lose a greater percentage of its value than the Acura.

To purchase the Cruz you would need a down payment of no more than $2,500 and the montly payment, while higher than a lease payment, might only be for three or four years. At the end of that time you would own the vehicle. So it would seem a lease probably makes more sense for an expensive car and less sense for an inexpensive one.

But many personal finance experts say it depends on a lot of factors. Do you change cars every three or four years or do you drive one until the doors fall off? If it's the latter then buying is a better deal. But if you change your wheels more often, then leasing starts to look like a better deal.

Just like buying, it only becomes a good deal if you negotiate one. Many consumers don't realize that a dealer will negotiate a lease, just as they would a sale. To dealers, there's very little difference. The consumer should view it the same way, and that means not paying so much attention to the monthly lease payment, which is what the car commercials flash on the screen.

Three things

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Features
  • clinic 1.jpg Edmond church to host free eye clinic

    An Edmond church and Feed the Children are partnering to provide a free eye clinic.
    Individuals will be able to receive a free vision test and free prescription eye glasses from 9 a.m. to 3 p.m. Aug. 9 at the Waterloo Road Baptist Church, 3100 E. Waterloo Road. All ages are welcome and registration is not required.

    July 29, 2014 2 Photos

  • UCO forensic volunteer wants to aid more agencies

    A four-person group of forensic investigators who volunteer their time to help smaller Oklahoma police departments isn’t enough to meet demand, a member said.
    Kama King, who recently completed her graduate research and will be a member of the faculty at the University of Central Oklahoma’s Forensic Science Institute, said outside of full-time jobs, members of the group volunteer to assist these agencies.
    As her career progresses, King hopes to help establish a permanently funded organization available to any agency in the state to assist in remains recovery as well as related training.

    July 29, 2014

  • jc_ITS map.jpg More cameras monitoring Edmond motorists

    The Edmond City Council this week approved a services agreement with Electronic Technology, Inc. For the  installation of Intelligent Transportation Systems’ video wall system at a cost of $314,620. The vote was 3-0.
    ITS is a fiber optic, wireless or hybrid communication system of monitoring road events and equipment in the field, data archiving and predicting traffic volume, said Kent Kacir, an engineer with Kimley-Horn and Associates Inc.

    July 29, 2014 1 Photo

  • jc_Earp Marlin 2 - photo credit Noel Winters.jpg Shootout of a sale

    An original article of the Wild West will be made available at auction Thursday. The rifle of legendary lawman Wyatt Earp will be part of the J. Levine Auction & Appraisal’s Summer Quarterly Auction in Scottsdale, Ariz.
    Earp was an Arizona deputy sheriff and deputy town marshal in Tombstone, Ariz. He is legendary for playing a key role in the gunfight at the O.K. Corral. He died in 1929 at age 80.
    Wyatt Earp collector Barry Tapp of Edmond will be selling his 1895 Wyatt Earp Marlin rifle at the auction. The rifle has an estimated value between $50,000 and $75,000. It includes authentication documentation from Tombstone Heritage Museum, according to the auction house

    July 28, 2014 2 Photos

  • 11.6.12 Mother and Cub (2).jpg UCO forensic researcher answers key question

    After working a few human recovery cases on a volunteer basis with a variety of police departments, a question kept bugging Kama King.
    “You spend the whole day,” the UCO W. Roger Webb Forensic Science Institute student said, “sometimes days, searching for someone and only find a skull or a few bones and it just ate at me. Are we not finding this or is it not there to be found?”

    July 28, 2014 1 Photo

  • Karan & Rwanda.jpg Peace through Business empowering women entrepreneurs

    Peace Through Business is part of the Institute for Economic Empowerment of Women (IEEW) based in Oklahoma City. It is a program that connects small business entrepreneurs in Afghanistan and Rwanda with business owners in Oklahoma. One such entrepreneur found out about the program from a friend, applied, and was accepted to take part in this year’s session.
    Upon earning a master’s degree in Civil Engineering from the Universite de Sciences et Technique de Lille in Belgium, Lyliose Nduhungirehe began her career working for a construction company in Brussels, but she quickly switched paths to Information Technology.

    July 28, 2014 1 Photo

  • How to care for your pet without breaking the bank

    It’s a shame furry friends can’t pay for themselves. Though wagging tails after a long day at work may make pet ownership seem worthwhile, a happy pup won’t stop those bills from rolling in at the end of the month. Thankfully, quick and easy ways exist for dog owners to cut down on costs.

    July 28, 2014

  • MS_new pastor_Page_1.tiff Local church welcomes new pastor

    For one of Edmond’s newest pastors, faith and family intersect on a personal level.
    Sam Powers, pastor at Edmond 1st United Methodist Church, 305 E. Hurd St., and his family arrived in mid-May and his first Sunday in the pulpit was the second one in June. He and his wife Sheryl Heaton Powers, have two children — Kyla will be an eighth-grader at Cheyenne Middle School and David will be a fifth-grader at John Ross Elementary.

    July 28, 2014 1 Photo

  • pm_Ramona Paul.jpg Keith, 5 others to receive service awards

    The 2014 Door-Opener Awards Gala dinner and silent auction Sept. 4, benefitting ASTEC Charter Schools, will recognize five outstanding Oklahomans and one Kansan for lifetime contributions made toward helping others in society maximize potential and achieve dreams.
    Those selected to receive a Door-Opener Award at the Skirvin Hilton Hotel event include Dr. Harvey Dean, Pittsburg, Kan.; Toby Keith and Tricia Covel, Norman; Former Gov. George P. Nigh, Edmond; the late Dr. Ramona Paul, Edmond; and Natalie Shirley, Oklahoma City.

    July 28, 2014 2 Photos

  • MS_Andy Billups.jpg Local man relies on experience in July 4 emergency

    Andy Billups just happened to have gained experience as a combat zone firefighter/medic while he was serving as a civilian contractor in Iraq.
    The Edmond businessman just happened to have a friend with a place on Grand Lake where he has been viewing Independence Day fireworks for a number of years, and he just happened to be there July 4.
    And he just happened to be relaxing on a hammock when he heard a some kids making a commotion.
    Located two blocks east of Disney on State Highway 28 in the foothills of the Ozark Mountain Range in northeast Oklahoma, the 59,000-plus surface acre Grand Lake is known for its state parks, marinas, restaurants, motels and fishing.

    July 26, 2014 1 Photo