Leasing a car in OKlahoma city (sales, insurance, to buy)

[Jamayev]

Gents and ladies,
Could you explain me how does the leasing a vehichle work?
I read a lot abut that, but i want to make sure i got all correctly.
Let’s say i want to lease the car for price $20k for 3 years with interest rate 2%.
What will be my montly payments for 3 years? And the end of lease term if i don’t want to buy the vehicle do i need pay additional money for it?

[Threestep2]

Terms depend on your contract. Some require a lump sum up front, some have mileage restrictions with the option to purchase additional, some have a final payment for purchasing/returning. Please read the fine print before signing!

Consider gap insurance, actual mileage you will drive, maintenance, bumper-to-bumper warranty.

[Jamayev]

What is the gap insurance?

[Threestep2]

There is a leasing thread in the economics forum.

[orca17]

Originally Posted by Jamayev

What is the gap insurance?

Gap insurance pays the difference between the car's actual value and the estimated value at the end of the lease contract. This can be useful in cars that depreciate heavily (in which case you probably shouldn't lease one), or cars that depreciate because of unforeseen events. A recent example of the latter is Volkswagen diesels, the value of which dropped like a rock when the news came out about VW fudging on federal emissions tests. Value can also drop below projections if you lease a model that is later discontinued, or one that is being replaced by a redesigned model. If you are unlucky enough to lease a car from a manufacturer that leaves the U. S. market or goes out of business, that could also adversely affect the resale value.

Leasing may have advantages for some people, but if you exceed the maximum mileage in the contract, the penalties can be stiff - as much as 25 cents per mile. Also note that you may be charged extra for normal things like door dings, paint scratches or upholstery stains when you return the car.

[Jamayev]

Thanks for notes guys.
Let me tell you what i got about leasing and please correct me if i’m wrong.
Let’s say i would like to lease Honda CR-v which i agreed for $27k and all other payments including sales tax and etc the total amount is $30k
The bank says ok, i ‘ll lease it for you with 0% interest rate for 3 years and the depreciation price after 3 years would be $18k.
So 30k-18k= 12k
1.am I required to pay 12k for 3 years or 18k for 3 years?
If 12k for 3 years and after 3 years i’m coming and saying i want purchase this car, so i will need to pay rest 6k to the bank for owning it?
If i don’t want to purchase the car, and i haven’t penalized the agreement with any additional milage or wear and tear and etc, will i need to pay anything or i will just drop the car and can leave?

Thanks in advance

[Johnhw2]

The $12k you paid is for the depreciation in the car while you had it leased. You can walk away from it for nothing if it's normal wear and tear and mileage us what you paid for. If you want to buy it at end if lease you will pay the value if the car or $18k at that point .