This might be a really stupid question, I am in process of figuring out the nuances of getting a car and just want to make sure I understand the basics.
Are the monthly payments cheaper to lease a car rather than finance to buy the same car?
And to keep it simple let’s say it’s $0 down for both lease and finance.
I don’t care about not actually owning the car and having to give it back after 3 years, I literally just care about the monthly payments being cheaper.
Depends on how much you put down if you finance.
To keep it simple let’s just so $0 down for both lease and finance
Then yes, typically leases will have a lower monthly payment, although often not a lower total cost
Okay awesome, what do you mean by cost, sorry new to all of this
The total cost to lease the vehicle for the period you have it may be higher.
Lets say you have the vehicle for 3 years and your lease payment is $500. Your total cost for 3 years would be $18000.
On the other hand, you might buy it, have a payment thats $750/mo, but then sell it after 3 years and recapture $15000 in equity. Your total cost for 3 years would be $12000.
In that example, the monthly payment would be cheaper to lease, but you would spend significantly more money.
Some variation of this thread pops up from time to time. Whether it applies directly to the OP or not, the gorilla in the room should always be called out IMO:
The person with a fixed / relatively small monthly budget is usually the last person who should jump on a hamster wheel of perpetual payments.
Here’s an example of a car I just got with both breakdowns… it will all depend on all of the data about a specific vehicle, and it’s going to be unique-no two will be the same. Research all possibilities and scenarios before making a decision…
So with your example you also need to qualify for the $7500 EV credit. If you don’t then it looks like it swings the other way
Most everyone will qualify for at least $4500 CVRP in CA
That’s why I said-it has many factors to making a decision… and, it is still better to buy vs lease in my example
Ohhhh I totally understand, thank you
I understand where you are coming from and appreciate the sentiment and think you are right
On top of that, doesn’t the rebate top out at $2k?
Unless you qualify for increased rebate, then you can get up to $7.5k.
Consumers with household incomes less than or equal to 400% of the federal poverty level are eligible for an increased rebate.
What is my guy smoking
That last line says, “The income cap applies to all eligible vehicle types except fuel cell electric vehicles.”
Have you checked the CVRP page? The rebate for the Mirai is $4500-$7500.
and btw, he also said “most” will qualify. the “last sentence” applies to all fuel cell vehicles and not “most” people buying or leasing them. so there’s that as well in assuming he was talking about an EV.
Yes that would make sense if my guy said fuel cell electric vehicles.
There is literally only 3 vehicles in that segment, so that is not most of everyone.
The increased rebate limit is pretty aggressive for such a HCOL place like California. A few years ago, it wasn’t as aggressive.
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