Auto industry lobbyists are very powerful and have made it so the law does not make car dealers disclose interest rates on leased vehicles. So the average interest rate for a leased vehicle is 14%, which is more than double most vehicle loan rates.

As a general rule, you should not lease or rent things that go down in value. The only exception may be a home and that can increase in value if you make improvements. Even after a 14% gain in leased vehicles, the car dealers still will charge mileage fees, and penalties for excessive wear and tear, like dents and scratches.

A new car bought with cash will make a car dealer $82 profit. A dealer will make an average of $775 per car if they can get you to finance them. A dealer will make an average of $1300 profit if they can lease a vehicle.

Labels: car leasing