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Can a leased car be included as part of net worth? If so, how?

  • You might want to give answers a couple of days before you accept them. That encourages the community to provide more answers, then you get to pick the best one. – MrChrister Nov 19 '13 at 16:27
  • A leased car is just as much an asset as a leased apartment. – RonJohn Jun 9 at 16:42
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I wouldn't think so. It has no positive value. It is in fact a liability.

You owe a specific amount of money per month as a payment for the lease. You could owe additional charges at the end of the lease for excess miles or above average wear. If you need to get out of the lease there could be a penalty.

At the end of the lease period you have nothing, except an option to buy the car. Which may or may not be a good deal depending on the exact terms of the lease contract.

It does need to appear in your budgeting, and insurance is needed to prevent the liability from blowing up in your face if something happens to the car. You might also need insurance to make sure you can make the payments if you are unemployed or disabled. Though those risks are similar to a loan.

  • Just curious, so do we have to pay Property taxes on leased vehicles? – JNL Nov 19 '13 at 19:43
  • If you say pre-pay for 6 months of the lease up front won't that six months pre-payment be considered an asset? – Victor Nov 19 '13 at 20:11
  • regarding the car tax in virginia: fairfaxcounty.gov/dta/cartax_faq.htm#9 the car taxes are either paid by the leasing company or the tax bill is forwarded to the lessee for payment. – mhoran_psprep Nov 19 '13 at 21:30
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Short answer, a lease is simply a rental/hire. So you don't own the asset, which means it does not count toward your net worth.

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