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Originally Posted by Kminor2578
All that taken into account as well. Also, taxes/fees paying those up front is not a risk as it is on putting money down on the actual lease. If you get into an accident or something is really challenging to get the money you put down back from the insurance company if the car is totalled.
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I didn't comment on that because a) I'm not 100% sure how it works and b) I'm 100% sure that it depends on what state you live in.
For instance (and theory here, I could be wrong), in Illinois, you owe taxes on total of the lease payments. So if your lease payments are going to be a total of $36,000, then you owe taxes on that amount day#1 (which they can roll into the lease payment and you are just paying interest on it - as in your cap cost goes up). I suspect my fine government here in Illinois wants that money even if you total the car driving out of the dealership (like they would want it on a purchase).
But some states tax the lease payment per month - in effect the tax is on the monthly payment made that month. I suspect that in those states you would NOT want to put the tax as down payment cause then you have to figure out how to get it back from the state.
But like I said, I'm certainly not an expert in this stuff in terms of taxes. I just know that you never want to pay down your cap cost with a downpayment - cause you will lose that if you total the car
I think
