Originally Posted by parham2652
that's what I was thinking of doing, but isn't it much cheaper to decide before you lease if you want to buy?
I would think that depends on the interest rate.
- Say, interest rate with lease is lower. EDIT: lower than financing
- EDIT: This doesn't apply if you have the cash to pay the car upfront. Paying no interest is the best thing. Unless the finance/ lease rates are pretty low and you like keeping the cash available. (Or because you can get a better return in another way, etc.)
- Pay the lease payment on a monthly basis, which in total equates to the depreciation amount with the lower interest rate.
- When the lease is over, you can decide if you want to keep it or buy it out.
- If you want to buy it out, pay cash and voila, you have not spent more.
- Key is to negotiate based on total price of car, from invoice up, regardless of method of paying for it.
- In addition, if your car gets damaged during the lease period, you don't swallow any of the depreciation if you give it back. I may be paranoid, but this has happened to me. Then I decided to try leasing and did as I described above.
This won't work if the lease rate is not attractive though.