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Old 02-20-2023, 10:53 PM   #196 (permalink)
JSH
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Quote:
Originally Posted by Isaac Zachary View Post
Ok, so (which means "or cheese" in Spanish), if I sell the Avalon and get $5,000 left over after paying it off (I owe less than $2,000) and then take that and search for a lease on a new Bolt, which not only gets the $7,500 federal tax credit it'll get a $1,500 state tax credit (would be $2,000 if it were a purchase and not a lease) then a base 2023 Chevy Bolt would be $26,500-7,500-1,500 = $17,500. So then we figure this will be worth something at the end of 3 or whatever years... (???) But if it's worth say half that, $8,000ish, then we divide that other $10,000 in the following years, I'd pay around $300 per month, or something like that??? Then owe the other $8,000 at the end of the lease???

Pretty much. A lease is basically a balloon loan. You make payments on part of the value of the vehicle and then have a lump sum payment due at the end. That is what reduces the monthly payment.

The difference between a balloon loan and a lease is that with a lease you have the option to just return the car and own nothing. (Well beside a lease return fee, excess mileage fees ($0.25 a mile for a Bolt), and the cost to repair any damage)
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