Posted by JHyre in Ohio on July 02, 2002 at 07:41:06:
Depends…leases are so convoluted anymore, that you have to get an after tax cash flow from each and compare to know the after-tax economic effect. All things being equal (they never are), a lease will normally generate greater tax deductions than an “equivalent” loan…but you can nicked on the lease via mileage restrictions, high buy-outs, etc. Lately, car companies have responded favorably to offers to buy-out leases at less than the contractually set price…whether that will last, I cannot say.
John Hyre