My car seems to be outperforming the stock market. Nothing special: a mass-market midsize sport utility vehicle leased in September 2020. In the pandemic supply chain timeline, that’s after the toilet paper panic and just before the shortage of everything else. And yes: rented. I buy a new car every three years to avoid the hassle of repairs and periodically clean my seat rails of Happy Meal fries.
The lease is based on a purchase price of $40,000 and a “residual” value of $26,000 at delivery, which I can pay for the car if I want. I’m so far over my mileage allowance that I’m starting to suspect I’m driving an Uber while asleep. That should subtract from the car’s actual value at delivery, but I see identical high-mileage cars selling for $33,500 now. If those prices hold for a few more months, I’ll be “up” my call option by 29%. That’s two points more than the
S&P 500
the index has returned in the same leg.