The Mudcat Café TM
Thread #61904   Message #998866
Posted By: Hrothgar
08-Aug-03 - 06:33 AM
Thread Name: BS: Leasing a car - Pros & Cons?
Subject: RE: BS: Leasing a car - Pros & Cons?
If you do lease a car, have it set up so that the payout price to buy it at the end of the lease is relatively small, and certainly less than the anticipated resale value at that time. It increases your monthly payments, but effectively reduces the interest you pay. Then, if you buy it at the end of the lease, you have an opportunity to re-sell it and make a lump sum profit.

Never, ever, ever set it up so that the buyout value at the end is more than the projected market value! It can lead to all sorts of complications.