if they sell him the car for $30k and he puts the same $1400 down (just drive off fees), his payments will be $543.31 for 60 months @ 1.9% according to cars.com's finance calculator..ideally, he wanted to stay around $350-$375 tax incl with $0 down on a lease.

http://www.cars.com/go/advice/financ...icrosite=false

 

So how much is tax on a lease there...is it up front or calculated on the monthly payment? Also, how much is tax if you buy the car? For example, in PA it's a straight 6% on the negotiated price to buy, but it's 9% on the monthly payment for a lease.

As for the multiple security deposit, Infiniti Financial gives you the option to put down up to nine separate security deposits on a lease. For every one, your money factor is reduced by 0.0001 or 0.24% APR. So, if the standard money factor on a 36/39 month lease is .00180 (4.32%) and you put down the max security deposits, it drops to .0009 (2.16%). The amount of the security deposit is the monthly payment before any reduction in money factor, before tax, rounded up to the nearest $50. So, if you did the 36 month lease with $410/month before tax, the security deposit would be $450. The 39 month option drops it to $394, so the security deposit is $400.

My comment was, for $3600 (9x$400) security deposit, you're saving over $1800 in interest through the life of the lease (because of the lower money factor). The $3600 is returned to you at the end of the lease, just like any type of security deposit, unless of course you owe money for damages, etc.

And, if you look at the APR's above, you can see why I said financing is a much better option $$-wise in the long run...you're saving an additional $1500 off the sticker AND the APR is lower.

 

on a finance and lease, tax in calculated into the monthly payments.