General Questions about Leasing Vehicles

Depends upon the cost of money (i.e., interest rate % = money factor x 2400... this is a very good approximation which will serve as a basis for comparison). If money is relatively cheap, then I suggest you capitalize everything and pay as little up front as possible. You can even capitalize the first month's payment. One thing you don't want to do is put money down (i.e., cap cost reduction) because a car is a depreciating asset. Furthermore, if you total the vehicle, you may lose part or all of your cap reduction.

John

#396 of 403 car shopping? by Stever@Edmunds HOST

Nov 09, 2012 (2:29 am)

If you are in the process of car shopping, using online forums and tools and plan to visit a dealer soon, a reporter would like to hear from you. Please email PR

edmunds.com by Tuesday, November 13, 2012 and provide a few lines about your experience so far.

#397 of 403 Risk of Single Pay Lease? by romil01

Dec 03, 2012 (2:30 am)

I know everyone says not to do cap cost reduction on a lease if you can help it due to the risk of losing your down payment if you total the car. But what about a single payment lease? Is there any risk associated with that for the same reasons?

Replies to this message:

kyfdx (Dec 03, 2012 5:33 am)
- romil01 (Dec 03, 2012 1:11 pm)

#398 of 403 Re: Risk of Single Pay Lease? [romil01] by kyfdx HOST

Dec 03, 2012 (5:33 am)

Replying to: romil01 (Dec 03, 2012 2:30 am)

Single-payment leases work differently..

For purposes of calculating the lease balance, a single-payment lease is considered to be a payment in escrow, from which the monthly payments are then taken, each month..

In event of an involuntary termination, then you'd receive the balance of the payments in return.

Replies to this message:

romil01 (Dec 03, 2012 1:11 pm)

#399 of 403 Re: Risk of Single Pay Lease? [kyfdx] by romil01

Dec 03, 2012 (1:11 pm)

Replying to: kyfdx (Dec 03, 2012 5:33 am)

Thanks for the answer.

#400 of 403 Trade-in without reducing cap costs by hamm3r

Dec 05, 2012 (9:26 am)

I am looking at leasing my first car & want to make as little a down payment as I am allowed. I have a car to trade in that I will probably get around $9,000 for, but I'd like to pocket the cash instead of putting it toward the lease. Having never leased before I do not know if this is common, rare, or unheard of. My best guess is that it is rare but that it depends on the dealer, but I'm hoping that those of you with more experience will tell me that it happens all the time & I should go for it. Thanks for any advice.

Replies to this message:

qbrozen (Dec 05, 2012 10:16 am)

#401 of 403 Re: Trade-in without reducing cap costs [hamm3r] by qbrozen

Dec 05, 2012 (10:16 am)

Replying to: hamm3r (Dec 05, 2012 9:26 am)

perfectly normal. they will just cut you a check.

#403 of 403 lease expiring? by Stever@Edmunds HOST

Jan 22, 2013 (9:10 pm)

A reporter would like to speak to someone who is going to be in the market for a new car in the next few months because their lease is expiring. If you fit this description, please email your daytime contact info to pr

edmunds.com by Friday, January 25, 2013 at noon PT/3 p.m. ET.

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