Inventory Car Lease Question

calokie · Oct 20, 2014

Hello, i'm new to the forums here and considering an "inventory car". I have four questions (and i'm sure many follow ups):

1) Can inventory cars be leased?

2) Does the discount on the inventory car count as a cap reduction (of some kind?)?

3) Any idea as to the residual value used to calculate the lease for 36 months? (is it the same as the buyback program)?

4) What money factor is used? Assuming good credit.

Thanks!

island · Nov 15, 2014

Great questions, I'd like to find out as well if anyone knows.

David_Cary · Nov 15, 2014

I don't think inventory cars can be leased. If they were, there is zero chance the discount would be cap reduction.

The residual value is about 53% which is inflated by the tax credit as compared to the buyback program.

3% is about the interest rate.

About the only reason leasing makes sense is for tax purposes. And because of the residual issues and tax credit, it really helps if you know you don't want the car long term.

Buying at 1% and getting the tax credit wins (except for leasing from your business).

calokie · Nov 15, 2014

You can definitely lease the inventory cars. The good discount inventory cars (on the west coast at least) are gone.

David_Cary said:
I don't think inventory cars can be leased. If they were, there is zero chance the discount would be cap reduction.

The residual value is about 53% which is inflated by the tax credit as compared to the buyback program.

3% is about the interest rate.

About the only reason leasing makes sense is for tax purposes. And because of the residual issues and tax credit, it really helps if you know you don't want the car long term.

Buying at 1% and getting the tax credit wins (except for leasing from your business).

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Inventory Car Lease Question

calokie

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island

Fairfield County / NYC

David_Cary

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calokie

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