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Originally Posted by Holeinoneboy
The majority of the people on these forums will suggest that a downpayment is not the way to go in a lease UNLESS your cashflow prohibits you from higher payments and you intend to buy out the car at the renewal AND you can deduct a portion of the lease payment against your personal income.
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do you agrea with this statement? if yes explain the reasoning behind it for me please.
as far as I understand the principles of leasing, if you put 5000$ down it reduces your payments by 138.89+interrest based on 36 months
so if you do not put the down payment you end up paying 5000$ more on the life of the lease plus interest, so unless you make more than 6.9% interest on your 5000 thought investment, there is really nothing to gain
as for MSD, at Audi 9 MSD gets you a 2% savings on interest, at BMW that's .9% not really alot to jump at, I would have to fork over 9000$ to save .9% on 58000$ (about 1500$ over 3 years), bear in mind had you put your 9 large at ING direct the interest earned would be close to 1000$, so in the end you saved 500$ by tying up 9000$ for 3 years....wow....
putting money down or not your gonna spend that money one way, either in your monthly payments or on your down, the total cost of the lease doesn't change, the one plus about putting money down is your not paying interest on that amount.