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      08-20-2012, 09:12 PM   #5
Second Lieutenant
Tourbillon's Avatar

Drives: '14 S550, '13 4S, '11 E550
Join Date: Mar 2008
Location: USA

iTrader: (0)

Originally Posted by AGS View Post
If you know you will keep the car for at least 3 years you should lease. The lease money factor is .00145 which equates to 3.48%. Plus you can do multiple security deposits to buy the money factor down to .00096 or 2.30%. The after tax return on doing MSDs is unbeatable in today's market. For me, it saved over $77 per payment which equates to a 9.4% annualized after tax return. Also, you get the free "put" at the end of the lease to hand the car back if it turns out to be a lemon.

The only downside is what Tourbillion mentioned - you give up some flexibility to get rid of the car before the lease ends.

There are websites like to get out of a lease earlier, but I have no idea what the success rate is.