Automotive

Using lease payment amount as reference for depreciation

  • Last Updated:
  • Oct 14th, 2020 10:02 pm
[OP]
Newbie
May 23, 2011
70 posts
102 upvotes

Using lease payment amount as reference for depreciation

Hi,

I’m looking at purchasing a used 2019 accord hybrid touring. And what I’ve always wondered was, does anyone just take a typical lease payment for that car and depreciate it from the new car price?

So I plan to get a car cost invoice for a 2020 model. Factor in the out the door price. Knock off 5% just for being used, and then knock off 1.5% for every month it’s been on the road.

I’ve found that lease payments are typically 1.5% of the cars value. In theory that’s what the dealer expects depreciation to be right?

Total price = # of months X lease payment + buyout price.

I imagine their buyout price is high or same as what they could sell it for. So if that’s the case then the depreciation = lease payment is about right.

Any thoughts on that?
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