How important is total net cost?
Many consumers evaluate a lease by taking the total of the lease payments adding the lease end value (residual value) to the total. Since most drivers do not buy out their leases, the effect of the higher residual values that most manufacturers use in their leases is negated. The value of the lease is really how much vehicle you get for the payment, and whether it fits your needs. What maintenance fees must lessees pay? Maintenance (servicing the vehicle) is the same for both buyers and lessees. If the leased vehicle is not serviced according to the manufacturer’s recommendations, the lessee can be responsible for excess wear and tear. How about the upfront costs? The upfront costs of leasing are usually the first monthly payment; refundable security deposit; and license, title and registration fees. Upfront purchase costs (down payment) usually are 10 percent to 20 percent of the total price including tax and title fees. How do monthly payments compare for buying versus leasing? Month
