Is there interest on car lease?

Question

just wondering, when you lease a car is there any interest that is paid?

Or is that on just regular car loans?

Please help.

<totally clueless. :O

Answer 1

just dont get a loan just pay cash its easier and you dont have to worry about payments

Answer 2

Yes, you pay interest on a lease. A lease is a form of financing like a loan. It is not renting, as many people think.

Part of of what you pay each month on a car lease is depreciation, the amount the car decreases in value as it gets older and miles are put on it.

Another part of what you pay is finance charges, or interest.

And finally, in most states, you also pay sales tax on each monthly payment. Here&#039;s an article that has more details:

http://www.leaseguide.com/lease08.htm

The total interest you pay on a lease is actually more than the interest you pay on a loan for the same amount of money, same car, for the same term.

Answer 3

Most of the lease payment is interest. If it&#039;s for personal use buy it , if it&#039;s strictly for business lease it .

Answer 4

For sure interest and high profits for seller.

I watched a man lease a Dodge (yuk) to people with bad credit and make a 3 grand commision.

Unless you are leasing for business with tax write offs buying is better. Cheaper too in the long run.