Originally Posted By: JeffKeryk
"A heavily subsidized lease, usually achieved by imputing an absurdly high residual value, may end up at a lower capital cost per mile than a purchase, but this isn't typical."
A high residual value is a key reason leasing our RX 450h made sense. A lease is simply paying depreciation on the vehicle. The depreciation of these cars is lower than most.
Your friend is a high residual value which carries from lease carrier to lease carrier. Most times the manufacturer has the best deal because they are the easiest on the vehicle inspection at the end of the lease for damages and excess wear and tear.
What people don't fully comprehend, you have the same residual value and the same depreciation whether lease, finance, or cash especially on the sticking point of confusion, mileage! Whether lease, finance, or cash, mileage lowers the end value of the car whether sale or lease residual value. The car does not know the difference. It's been mentioned here that posters don't want to pay for excess mileage so they refuse to lease because it's going to cost them more in the end. What? That's stupid. If you put more mileage on a vehicle than average, isn't your car with less when you sell it? In a lease you are just paying for that excess depreciation by paying a per mile charge. It's all the same. Whether a per mile charge for the excess mileage or selling the vehicle for less money because it had more miles on it.
A lease is completely negotiable. You first want to negotiate the cash price of the only a new car! as if you are paying cash. Than you ask them to give you a price on a no money down lease 3 year lease. Most times they want money up front to pay the State sales tax as in a lease you pay the sales tax monthly but the dealer pays it all upfront!
"A heavily subsidized lease, usually achieved by imputing an absurdly high residual value, may end up at a lower capital cost per mile than a purchase, but this isn't typical."
A high residual value is a key reason leasing our RX 450h made sense. A lease is simply paying depreciation on the vehicle. The depreciation of these cars is lower than most.
Your friend is a high residual value which carries from lease carrier to lease carrier. Most times the manufacturer has the best deal because they are the easiest on the vehicle inspection at the end of the lease for damages and excess wear and tear.
What people don't fully comprehend, you have the same residual value and the same depreciation whether lease, finance, or cash especially on the sticking point of confusion, mileage! Whether lease, finance, or cash, mileage lowers the end value of the car whether sale or lease residual value. The car does not know the difference. It's been mentioned here that posters don't want to pay for excess mileage so they refuse to lease because it's going to cost them more in the end. What? That's stupid. If you put more mileage on a vehicle than average, isn't your car with less when you sell it? In a lease you are just paying for that excess depreciation by paying a per mile charge. It's all the same. Whether a per mile charge for the excess mileage or selling the vehicle for less money because it had more miles on it.
A lease is completely negotiable. You first want to negotiate the cash price of the only a new car! as if you are paying cash. Than you ask them to give you a price on a no money down lease 3 year lease. Most times they want money up front to pay the State sales tax as in a lease you pay the sales tax monthly but the dealer pays it all upfront!