Hacker News Reader

Leasing is generally the most expensive option. You're basically getting a loan for the depreciation + profit. Since it's not technically a loan you don't get the interest rate disclosed to you. And market research shows the interest rate you are paying is 14%.

View on HN

Dealers don't usually volunteer it, but you can just ask your salesperson for the money factor. Take the number and multiply by 2400 to get the interest rate. My current lease rate is 0.75%, while the interest rate on a loan would've been 1.9%. The lease worked out to be cheaper than buying. Some car companies also have a multiple security deposit discount that lets you further reduce the money factor by a significant amount.

I've gotten several leases over the past 10 years, usually at rates 0.9% to 1.9%, maybe I'm lucky?

It's a fantasy that you're going to pull one over on the ginormous mega-bank that does this for a living. I recall a time when many manufacturers were offering 0% interest on car loans. Obviously they just shoved all their profit into the principle.

Reply on news.ycombinator.com