re: Thinking about leasing a vehicle

Great. At the tier credit I was, I got a "money factor" of .00013 which is compare to less than 1% rate.

quote:

---

I don't see how that would work unless you were financing a purchase with a high interest rate loan. Most manufacturers offer some pretty attractive rates if you go through the manufacturers' finance company. Last 2 vehicles I bought were financed at 0% and 0.9%. Had one for 4 years and the one I have now is almost 5 years. I don't see how I could've came out ahead by leasing on either

---

because not all leases are created equal. some makes & models lease better than others. manufacturers run lease specials by either inflating the residual, lowering the money factor, or both. its why a $60k mercedes E class leases for the same amount as a $45k audi a5. Mercedes chooses to move a lot of E classes by making them attractive to lease.

Because of this, cars that lease well typically have lower resale value in the used market (why by used when you can lease new for cheap?) and cars that don't lease well hold their value better.