lease vs. buy a new car
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Answers ( 6 )
Great info. Thanks!
This is good to know!
That's good to know!
Great tips. Thanks!
Generally speaking, if your state sales tax regulation says you need to pay the full sales tax, no matter whether you are purchasing or leasing, then leasing a car is NOT a good idea.
If you are in a state where you just need to pay sales tax on the portion of depreciated value (negotiated sale price - residual value), and:
1. the residual value percentage is high (for a 36-month lease, residual value > 60% is considered reasonable) ;
2. money factor is low (< 0.002, equivalent to a 5% APR)
3. negotiate the sale price to be as low as possible
Then you will find leasing a new car is more convenient, especially for those cars with high MSRP (for example > $70k).