Lowest Risk/Cost option for Lease Inception Fees

k6m3w

Lease novice here. Was wondering, I've heard it's "smarter" to roll as many lease inception fees as possible into a monthly payment. You then pay the MF/APR on that extra amount over the life of the lease right? However, the thought is that paying that small amount of additional interest is better because of the risk that *IF* one totals a car he/she will not be liable for the balance of those payments and portion of remaining inception fees outstanding. Do I understand that correctly?
Thanks in advance

Michaell

k6m3w said:

Lease novice here. Was wondering, I've heard it's "smarter" to roll as many lease inception fees as possible into a monthly payment. You then pay the MF/APR on that extra amount over the life of the lease right? However, the thought is that paying that small amount of additional interest is better because of the risk that *IF* one totals a car he/she will not be liable for the balance of those payments and portion of remaining inception fees outstanding. Do I understand that correctly?
Thanks in advance

That is correct. Our recommendation is to roll everything but the non-taxable government fees into the payment, for exactly the reasons you describe.

The only exception to that are sales taxes in NY State - we suggest you pay those up front, as if you roll them in, you end up paying tax on the tax (don't ask why, but we had an expert explain it to us several years ago).