Quote:
Originally Posted by BeamerDreamer
Please correct me if I'm wrong but if you are paying for everything up front, why would be you paying interest? The way I understand the lease payments is that it is comprised of depreciation and interest. If I were to pay all the depreciation at the time of signing the lease, why would I have to pay interest? It's like using cap cost reduction to buy down your payment all the way to $0. :iono: Right?
|
Please note that in a lease, the is no "interest". Leases have a "money factor". You are promising a steady stream of payments in return for using the vehicle.