🚗 Lease vs Buy

Lease vs Buy FAQ

Common questions, answered directly.

Is leasing a car a waste of money?

Not necessarily. The "no equity" argument against leasing also applies to loan interest, which you also don't recover. Whether leasing costs more depends on the specific car, its residual value, and how long you keep it.

Can you negotiate a car lease?

Yes — specifically the cap cost (the car's price). The residual value is set by the manufacturer and not negotiable. Many people don't negotiate the cap cost on a lease because dealers imply it's fixed. It isn't.

What happens at the end of a lease?

Three options: return it (and pay any excess mileage or wear-and-tear fees, plus disposition fee if you don't stay with the brand), buy it at the pre-agreed residual price, or lease or buy a new car from the same brand (usually waives the disposition fee).

Does leasing make sense for an EV?

EVs leased as "commercial vehicles" can pass through the $7,500 federal Clean Vehicle Tax Credit to the lessee. Verify with the specific dealer whether the credit is being passed through — it materially changes the economics.

Not all EV leases pass through the credit. Always ask explicitly before signing.
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