Leasing

Leasing has long been touted as the most cost effective method of accessing the convenience of an automobile. Although leasing does provide one with the opportunity to drive a newer vehicle while paying lower monthly payments (as opposed to a purchase), the long term cost differential is really quite staggering.

The average motorist operates an automobile for about 39 years. If one chose to acquire their vehicles by leasing, they would enter into 13 individual lease contracts.

At Gaulin's, our number crunchers decided to measure the actual cost of leasing a car every 3 years as opposed to purchasing a car and driving it for 10 years (the average age of a car on the road today is over 9.5 years). Our research turned up some pretty impressive details.

First we had to set a few parameters such as cost of maintenance. The lease car maintenance costs were pegged at $1054.25. This includes 15 oil changes, 3 air filters, 2 brake sets, a 30,000 mile service and 2 wiper sets.

The purchase option cost was determined by 40 oil changes, a 30,000, 60,000, 90,000 and a 120,000 service, 6 brake jobs and major and minor services projected to cost $4000.00. Total maintenance and repair costs over the 10 years of ownership would be $6429.00.

Using a typical auto, retailing at $25,000 and adjusting for inflation over the 39 year period, we estimated that the total cost for lease payments and maintenance would be $389,624.49. While the cost of owning a car for 10 years at a time (total of 4 cars), car payments and maintenance would be $172,621.40.

The difference in total transportation costs is $217,003.09.

Wow, what a nice nest egg for the retirement fund!

At Gaulin's we earn your trust by doing the research to save you money. We do more than fix cars, we are your transportation consultants!