Myth about leasing

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Myth about leasing

09/12/2016 / 22 Comments / 2566 / Blog, News 2019
myth about leasing
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Sometimes the society demonstrates an adverse reaction towards car leasing. The precise reason for it is unknown: maybe, the specific terminology of these deals seems strange and uncomfortable for customers, or maybe some conditions of leasing deals are too strict and inadmissible.


Leasing arrangements are very frequent and widespread in the USA, for about 30% of all the car transactions belong to this category, but it’s common knowledge that the percent of these deals should increase. As manufacturers figured out that the cash rebates they offered were hurting resale values, and as the credit spigot began to flow freely again, carmakers shifted incentives from rebates to low-interest financing and leases. Honestly, the quality of the deal depends on you. If the purpose is clear and you have negotiating skills, the following myth will be just funny for you, a sort of joke.

Leasing a car is the best idea. car-leasing

If your driving skills and your attitude towards vehicle let you keep a car in a perfect condition until the final day of a deal (or if you start with paying a grave number of money) you would better buy your proper one, it will be more beneficial. But if you decide to trade in a car, and your loan is not paid off at all, the deal will be unlucky, and you’ll just lose your money. But if you can find benefits in leasing deals, it will be a better choice for you.

For example, you are going to buy a 2016 Acura ILX in LA Autostore (list price is $28,820.00) for invoice price – $25.938 with 10% down and a five-year loan at 2.9% But then, three years later, you realize that a new car is necessary for you. If you trade in your Acura, the profit will be for about 46% of the list price, or $13,257 (if we count the amount according to the Kelley Blue Book) And after paying the obligatory loan, you’ll spend $12,161.

But now let’s imagine that you are going to lease your Acura for free years. In this case, your monthly payments will vary, $179 with a $1,820 down payment. (According to the prices on Acura ILX for 2016 in LA Autostore) After turning in car, you may be free (if you have paid all the bills and you haven’t crashed a car) In total it will cost you only $8,264. So, if you lease a car, $3,897 will just stay in your pocket.

According to the law system of the primary number of states, taxes are paid only on the actual lease payments; that’s why leasing is undoubtedly profitable. And bringing cash to the table is not necessary if you lease.

Looking for a good dealer for leasing is available. car-manager

If you wanna be a success in leasing, you need to study basic terms of this phenomenon:

Capitalized cost. If we speak about car leasing, this term denotes the price of a vehicle. But it doesn’t matter at all if you buy a car or lease it – the price should be haggled over as much as possible.


Money factor. While leasing a car, try to find the lowest rank of this element (to count the rate you are interested in don’t forget to multiply it by 2,400)

Residual value. This term denotes the value of your vehicle on the moment when the deal is finished.

If the residual value is inflated, it can either handcuff your monthly payments or, to the contrary, lower them. The president of Tarry Shebesta says: “A more realistic residual value will make it easier to sell the lease, trade your vehicle in the middle of the lease or buy the vehicle at the end of the lease”.

So, while leasing a car, pay your attention to such factors as residual value, capitalized cost and money factor. (The capitalized cost will be haggled over with the dealer anyway, whoever has written the contract) If you live in CA, LA Autostore will be one of the best choices for you.

The tax break is available only for legal entities. taxes

If we study tax laws of the USA, we’ll see that monthly leasing payments of legal persons can be classified as charges.
But in the reality tax break are available for private traders too. In the major part of American states, taxes are only on the monthly payments, a list price of the vehicle is free of them. If we turn back to our example with Acura ILX, you’ll pay taxes on about $11,131, thus that the list price is $28,820. (The list of the states which let you charge sales tax on the entire price is here: Virginia, Arkansas, Oklahoma, Illinois, Texas and Maryland.

Disbursement of hefty fees is inescapable after turning in your car.

As you know, the basic mileage limit is 10-15,000 miles, but it’s rather tangible for your purse. In addition do this, the standard per-mile penalty (20-25 cents) seems to be mortal. But anyway you’ll get the penalty after trading your old car in.

So, we just advise you to elevate the mileage limit. In this case, the monthly payment will be elevated too, but trust us – anyway it will be the economy of money.

You can’t finish the deal too early because you’ll lose the money.

lost money

An example is the best way to convey people, so visit and They match customers who prefer a short-term lease with those who decided to get out of the deal earlier. Just see the results and make your choice.

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