Can you negotiate $0 due at signing when leasing a car?

Question

I would like to lease a car this year for the tax write off. Here's my situation: I owe about $7K on the car, it's trade-in value is about $5000. Is it possible to trade a car in for a lease, or should I sell it, pay the difference and start a lease? I have zero experience on the pros and cons of leasing. Some people I know swear by it, some say I should beware.

Answer 1

Yes there are 0 down leases! i DO THEM ALL THE TIME!

Ok here are the pros to leasing
1. If you do not drive alot of miles it is a great way to get rid of negative equity on a previous vehicle
2. You do not need as much down for a lease because you are only paying a percentage of the sales price of the vehicle
3. Most leases are not true leases but smart buys which means you do not have all the turn in fees at the time of signing
4. Do not go into this thinking this is going to incredibly drop your payment. Typically a lease payment works out to be close to a 72 month buy payment.
Remember any negative equity brought into the lease is going to effect the payment far worse than on a buy, typically a payment on a buy is $20 per thousand financed, conversely a lease is between 30-40 per thousand financed that is why in the fine print on lease specials they have 2000 due at signing PLUS TTL, reason being the 2k drops the payment between 60-80 a month and makes the payment look more attractive when included with tax title and license fees. I love leasing because we never build equity in cars anymore and it negates the possibility of being upside down after three years. On the other hand you need very strong credit to lease and you MUST take care of the car, the manufacterer is renting you the vehicle for a short term he expects the car to be in good condition with low miles so he can resell it for the balance.

Answer 2

First, you don't need to lease a car to have a tax deduction. That is a myth probably started by car salesman trying to lease more cars.
Real simple, leasing is more expensive and carries certain risks such as going over the mileage, repairs required to turn in the car, replacing tires and floor mats, etc.
You can take the standard deduction on your car. Check with a tax guy.

Answer 3

Go in knowing exactly what you want. Have it committed to memory. Take a level headed friend or family member with you. Tell them what youre willing to pay, if they agree...you have the car. Just be prepared to leave!