Cash Car Convert

Let's explain the dangers of auto leasing! Jeff Bartlett, deputy automotive editor at Consumer Reports“If you asked me what is the most expensive way to get a car, the answer would be: You only want to own it during its period of greatest depreciation and then move to another new vehicle.” “Well, that’s what leasing is.” lease noun \ˈlēs\: a legal agreement that lets someone use a car, house, etc., for a period of time in return for payment Click to Listen [powerpress] How is the payment calculated? Purchase price - how much you pay, you should negotiate just as hard as if you were buying Cost of money - interest rate Lease term - number of months of the lease Residual value - estimated value of what the car will be worth at lease end Sales tax - You will only pay taxes on the sum of your payments, which is the difference between the purchase price and residual value. What is the average lease payment? Avg auto loan in Q4 2013 $471Avg auto lease in Q4 2013 $420 What are the gotchas with leasing? Paying too