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What is included in the initial costs of leasing a car?

Posted by Admin Posted on Aug 08 2017

What is included in the initial costs of leasing a car?

 

Paws Up and pay attention to this!!!

Learn what the total initial costs will be when determining if you want to lease or buy. Smart cats like me, will use this total amount to compare to the cost of buying.

Initial costs are the amount you will need to come up with for the down payment when you lease a car. The security deposit, the first and last lease payments, the "capitalized cost reductions," the sales taxes, title fees, license fees, and insurance are included. Usually the initial costs amount to less than the down payment that is necessary to purchase a car. During the bargaining with the dealer, all initial costs are open for negotiation.

The Lessor must disclose all up-front, continuing, and ending costs in a standard, understandable format according to the Federal Consumer Leasing Act.

If you have any questions regarding accounting, domestic taxation, international taxation, IRS representation, U.S. tax implications of Real Estate transactions or financial statements, please give us a call at 305-274-5811.

Source: Mr. Meowney Thomson Reuters

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