Watch Out When You See $0 Down Leases
But the monthly payment will be higher since you are not pre-paying some of the lease obligation.
In general, you can expect your lease payment to increase by about $40 for every $1,000 you don't make as a down payment.
When signing the papers for a lease, you pay a down payment (or not), sales tax on your down payment, your first month's payment, possibly a security deposit (which you get back at lease-end), and any official fees required in your city, county, or state.
This is called "amount due at signing." But notice that your down payment (if any) is only a part of the total "amount due at signing". This important point is often not well understood.
This means that there can be differences between lease deals that offer $0 down or no down payment.
Even if you make no down payment, you may still pay the other fees. However, in some "$0 due at signing", not only do you pay nothing down but the other fees are rolled into the lease. You still pay for them in the long run, but you don't pay them up front in cash.
3 Steps Every Car Buyer Needs to Take to Save Maximum MoneyThe key to getting the best deal is to gather price or lease bids from as many local dealers as possible. Then shop that best price around until no one can beat it. Here are the steps:
Step 1 Get Prices From My Trusted NetworkSelect the vehicle you're interested in to see if there are local dealers in my network who will provide you with their best upfront price. You will get direct access to an internet sales manager who you can further negotiate with online (no need to visit dealership).
Step 2 Get Prices From TrueCar / CarsDirectTrueCar, and CarsDirect are my top 2 online price quote recommendations. These services show you pre-negotiated prices from dealers closest to you - and the deals are usually pretty decent. But remember, you can still negotiate further.
Step 3 Complete my ChecklistFollow this up with my checklist to make sure you squeeze out every last bit of savings.
- Gregg Fidan
Each week, I'll keep you up-to-date on the latest car deals and news that might affect your purchase. This includes...
- Best Rebates, Incentives, and Lease Deals
- Latest Car Buying Scams and Tricks
- The Best & Worst Time to Buy a Car
- Which Cars You Should Avoid