Demistifying the lease

[mghaynes]

ok, I found a better lease. For a 4.6 V8 with tech package they are giving me selling price of $36,600. The lease cap cost is $35118 with required $3000 cap cost reduction. Interest rate is 2%. Monthly payment before tax is $496. Residual is $18900. Is this a good deal?

 

[jjsC6]

ok, I found a better lease. For a 4.6 V8 with tech package they are giving me selling price of $36,600. The lease cap cost is $35118 with required $3000 cap cost reduction. Interest rate is 2%. Monthly payment before tax is $496. Residual is $18900. Is this a good deal?

Why is $3000 required? I've never heard of a lease that requires a down payment - is that what you are saying?

I find that stating lease "deals" with a cap reduction to be somewhat meaningless. They can make the payment as low as they want to by screwing with the down payment. The only lease numbers that mean much to me are with zero down.

Also, different states have different taxes on leases. Without knowing what it is in your state, I can compare to Texas. Here in Texas the sale price of the car is taxed entirely - it can be paid up front or calculated as part of the monthly payment. In other states the monthly payment is taxed.