Car Buying Tips Guide 1

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leases for most people—although there are exceptions for very high-endcars, municipalities and others.


The states and federal government are regulating leasing more and more,and make sure that lease contracts are standardized to a large degree,


clearly listing most all the costs. The only thing lease contract is the interest rate. Note—it is not called that; it is referred to not disclosed on a modern (^)
as either the “lease fee” or the “rental fee.” The benefit is that this is tax-deductible for many people who itemize, unlike auto loan interest.
multiply it by 2400, as here:TIP: To figure out the interest rate equivalent of a lease fee,^
.00200 lease rate x 2400 = 4.8 percent interest equivalent
The downside is that it can be hard to figure out what the rate actually is.Manufacturers and banks offer their dealers a “buy rate,” which they often (^)
mark up to you, the lessee, just as they do on loan rates. And they don’thave to disclose this. More problematic is when the dealer implies that the (^)
“capitalized cost” (i.e. the purchase price), which contract, includes all the profit. is disclosed on the
As an example, the salesperson may tell you that they’re selling the car ata few hundred dollars over cost, and show you the actual invoice to prove
it. Yet, with the other hand, they have marked up the lease rate two

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