Help with leasing /financing a car!

Hi! I don't have experience at all with leasing a car, but someone close to me wants to buy a Mercedes (their first luxury car and they're super excited for it ) However, they gave them an option to lease it, with a negotiated buy out price already in the contract, this way they don't have to put any money down and the interest is basically nothing. Instead, with financing, they'd put almost half down, and have a slightly lower payment, but with a higher interest. Does anyone have any experience with this? They want to do the leasing, then buying, but are afraid that in the end it will hurt them (or if the salesman is not disclosing something to them about it being the worse option). I'd appreciate any feedback!!!!!!

Message edited 11/22/2013 6:51:18 AM.

Help with leasing /financing a car!

In less words, they are paying more for the same go to lease, then to burn as oppose to just buying it outright. There are pros and cons to this as if you really decide at the end of lease period (2-3 yrs) you can get something else. Con is you pay more.

Re: Help with leasing /financing a car!

They will wind up paying more for the car if they buy out the lease at the end of the term and pay residual value. There is no negotiati for the residual once the lease term is up.