Find the Alternative Cost of Buying a Car With This Buy or Rent Calculator
A number of factors influence your decision to buy or rent a car . However, opportunity cost is one factor that can be overlooked. This calculator from MarketWatch takes into account the potential return you will receive from renting and investing, not buying.
As MarketWatch explains, the argument against leasing often boils down to “you have nothing to show for your money,” and that argument leaves out the opportunity cost . You can potentially invest the purchase price of the car and make a profit instead.
Of course, you cannot predict the return to the market, which means that you would actually be investing money, not just spending. So there are even more variables to think about. However, the calculator is unique in that it at least gives you a rough idea of how much you can earn over time. You enter your details, including the expected profit, and the tool tells you at what price the lease outweighs the purchase.
The calculator uses some general assumptions that may differ depending on your situation, but again, it gives you a rough idea that you can match against your buying decision. Check it out at the link below.
Rent or buy a car? – Calculator | MarketWatch