The Leasing Advantage
"Equity" Myth or Reality?


The Elephant in the Room 
That No One is Talking About 

As consumer consultants for English-speaking Israeli's, iAnglo Auto Association stays current on automobile market trends enabling us to better advise our clients as to which programs and services are best suited for their individual circumstances.

A Hard Look at Private Leasing
and It's "Equity" Position

The # 1 reservation clients assert as to why they are reluctant to utilize a lease program is that they will not build up equity like they assume that they will in a conventional financing contract. This statement, while technically true, is in practical terms false; you really do have equity in leasing and this equity is the "elephant in the room" that no one is talking about.

To illustrate our point, let's compare a purchase to a lease of two very popular cars in Israel today. All payments include VAT, are are NIS.  

2018 Hyundai i25 Accent

30 mth Lease

7900 down

Pmt. 1,212 NIS 

60 mth Conventional

7900 down

Pmt. 1,881 NIS 

Conventional 60-month contract payment, 669 NIS more per month.  Below we have calculated the total cost  for 30 months including the down payment in both contracts.  Point of Interest: 74% of of the total interest charged on a 60 month finance contract will be paid by month 30,  83% by month 36. 

Total 30 mth lease cost 

 45,760 NIS 

Total 30 mth conventional finance cost

64,357 NIS 

There is the "equity" - the elephant in the room no one talks about.  

In 30 months you can drive a brand new Hyundai i25 Accent and since you leased it you spent 18,597 NIS less.


2018 Toyota Verso (7 Passenger)

30 mth Lease

9990 down

Pmt. 2,104 NIS 

60 mth Conventional

9990 down

Pmt. 2,546 NIS 

Conventional 60-month contract payment, 442 NIS more per month. Below we have calculated the total cost  for 30 months including the down payment in both contracts.  Point of Interest: 74% of of the total interest charged on a 60 month finance contract will be paid by month 30,  83% by month 36. 

Total 30 mth lease cost 

 73,110 NIS 

Total 30 mth conventional finance cost

86,378 NIS 

There is the "equity" again, in this instance the elephant is a little thinner but still present.  

In 30 months, leasing a brand new Toyota Verso will save you 13,268 NIS.


Summary

There is more than the monthly and overall savings.  Everyone knows that the first three years of a cars life is the best, which is why manufacturers are comfortable giving a warranty - the chances of these new cars needing repairs are slim.  With the money you saved you can in 2.5 years take another new car and enjoy the continued factory protection against repairs. 

Cars are the most fuel efficient, powerful, safe, and tight in handling and noise reduction, in the first 3 years of life on the road.

Turn your automobile costs into a controlled utility payment with no unexpected repair or volatile depreciation costs.  Contact us today by completing this short form - or

Options are great, if you prefer conventional financing because it is more familiar or you intend to keep the vehicle for many years then please visit this link. Back to main lease page.