Reply to Tell me about leasing a car. Never done it and need advice.

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[quote=Anonymous]Leasing is a terrible financial proposition right now. Few manufacturer incentives. High interest rates aka “money factor.” Residuals (the value of the vehicle at the end of the lease expressed as a percentage — remember you are only paying for the cost of depreciation over the lease period plus taxes) — are somewhat higher due to market conditions. It’s a decent option if you can write off payments as a business or sole proprietor.

You can look for information about specific vehicles on Leasehackr.com. There are a few highly knowledgeable brokers who post there and can guide you through the process. Depending on market conditions, you can explore buying out the lease early and pocketing any “equity” (that is,  the market value in excess of the contractual depreciated value after accounting for sales/transfer taxes) by selling back to a dealer or to a third party through private sale.

If you’re looking at an EV lease be aware that not all lease originators pass the federal tax credit through to the lessee. Also be careful about putting too much down at closing as a means of reducing your monthly payment. If the car is totaled you likely won’t be able to recoup that payment. [/quote]

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