What I meant was... (archive)
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Posted by Trex on November 27, 2000 at 13:40:20:
In Reply to: Re: As for that 68% residual... posted by Alpina22 on November 27, 2000 at 12:28:34:
(posted from: us.leggmason.com (208.237.33.2))
...if you bought the X5, the value after 3 years may be less than what is calculated at 68%. Trade in value or private sale value could/might be less than the 68% you calculated. Thus, buying could be more costly, leasing a better deal. I know that first one didn't come out right.
Don't forget, also, that with inflation, "then" dollars cost less than "now" dollars. Tie up as few "now" dollars as you have to for an asset that only depreciates.
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