I have never leased any car before. I have few lease related question. If any of you leased a car before please do share your input!
Residual value is negotiable? Based on my reading on internet is, It is NOT. Only factors are 2, 3 or 4 year lease and 10, 12 or 15K miles per year. Lower number will get higher residual value. Any comments?
Lets say my purpose is only to drive a new car every few years and that’s why I am leasing.
Q1. Should someone only lease lowest possible years like 2 years when leasing? Would someone will save more money leasing shortest lease? Remember idea is to drive a newer car, and after 2 years next car will also be a lease. Is there any thing 1 year lease?
Q2. Residual value of the car is off MRSP or from the negotiated price of the car which is usually lower than MRSP minus any car makers incentives?
Q3. When you buy a car you have to pay sales tax. When you lease a car, do you have to pay any sale tax? I have seen on internet, where people are quoting lets say monthly payment is $300 plus tax. What kind of tax are they talking about?
Q4. With lease you are financing the depreciation. Let say you leased a 30K car for 3 years with Residual value factor of 0.6. At the end of 3 years car should be worth 18K according to lease agreement. Now lets say money factors is 0.02% (2% interest rate). Since my bank is not paying me any interest rate on my deposit. Can I just prepay depreciation of 12K in advance? Am I sort of day dreaming or has this been done? Remember idea is to get a newer car every few years and assuming I have 12K in the bank.
Q5. What is normal wear and tear? Some car dealers can be difficult when buying a car. How they determine normal wear and tear? Would they try to extract some extra dollar from you at the end of lease esp. if you decided not to get your next car from them?