Down payment on lease reddit. BMW, Mercedes, and Toyota offer 1 payment leases.
No. You are essentially buying down the monthly payment with your own money, ie a prepayment of the lease obligation. Your monthly lease payment should not exceed . If this is true. You don't want to put a down payment on a lease. If you spread the $3600 across the 36 months without putting all that upfront cash, you're still in the same boat. Multiply payments * term and add the $40k down payment and TADA! The 72 month option will cost an additional $21,600 in interest charges is all. I decided to trade it in, they gave me 2k for it so i had 7k added on to my new loan of 23k, the car was worth 23. I overpaid by like, $1-2k. that you want to pay. With a lease, it’s a bit more complex. In a lease, Kia financial owns the car. Where the predicament starts is that I currently have a car that I need to sell or trade in. Insurance company doesn’t care what you paid for the down payment. If you buy a property to owner occupy with your business you can do a SBA or Bank loan as long as your business occupies 51% of the property, and then you can lease out 49% of the property See full list on bankrate. So if I paid this month twice, I would still have to pay November. Down payment: A cap cost reduction used to lower the monthly payment. In the market to lease a 22 or 23 Sierra 1500 elevation with a 5. I got it paid off 2y early. Not sure that is realistic but the math is what it is and Tesla MF has been . Frankly If you really want to lease and really want a truck you’re better off with a domestic full size. For example, if you lease a Camry and put $3k down. Luckily it was late enough in the afternoon that they wouldn’t process my payment until the bank had a chance to backfill my account. Since it’s a waste of $6k plus another $26k for just leasing. The finance the model Y. You would have paid basically the exact same amount if you pay it off in 2 months, or 36 months. Personally, I'll be able to afford either lease comfortably. NY, NJ, MN, OH and GA are ones where tax is levied up front on total of lease payments. 49% interest rate (random estimate). But, if we assume that you borrow a full $15,000 at 5% plus around $1,000 in taxes and fees, you'll end up with a monthly payment of $301 for a five-hear loan. Hey everyone, I have a quick question based on something, I’ve seen in this subreddit already. 52 at the end of my lease. At the end of the day you still pay the same $$ in total regardless of down payment. 0 down $358 a month (using the tax credit as down payment. BMW, Mercedes, and Toyota offer 1 payment leases. If you don’t mind, could you please share what the down payment and incentives were? FTFY - you do not get any down payment back when a lease is totaled, because you’re reducing the capital cost that is a part of the lease. Total head scratcher but that's how it was with mine. If they won't let you do that then my guess is you have bad credit and won't be able to get that lease anyway. You won't get it back. $300 a month. Maybe crv no down 400 month flat msx or camry no down 300 to 350 flat corolla no down 250 max . Finally sat down and did a little math. My experience has been the following I will mention one loop hole. 2024 IONIQ 6SEL4 months lease, with $460 due at signing. However during the credit check the dealer got back to me asking to put a down payment of ~10% of the car's value. Why is the 2 year lease more than a 3 year lease. Apr 12, 2024 路 As a general rule, every $1,000 in the down payment reduces your monthly payment by $15 to $18. So I agreed to lease a 2017 at $21,068. Leasing a Tesla is essentially renting a Tesla…you can’t buy the car at the end of the lease. I guess for those who have a difficult time managing their money on a monthly basis I can see why they would put money down to lower monthly payments. Nononononononono. Was just told by a dealer I would have to pay the remaining payments left on the lease. Funny, people who downvoted must not have a lot of knowledge about leasing. Also, I’m open to zero cash flow if it helps me reduce my down payment and maximize my loan amount. or zero down $459 ($506 with tax) Alternatively, a Model Y Long Range lease is awful by comparison 36 months 10k miles a year $569 a month including tax $6013 down (yes 6k out of pocket with no option to buy) Lease Down payments I have seen for Tesla: (all credit scores above 700) Model 3 - $7100 Model Y - $6800 Model Y - $7500 19 votes, 33 comments. My payment budget is ~$1,000 Option one is to lease a new one, but knowing my driving I'd like to be at 12-15k miles a year. Here are the lease options im looking at: 24 months, 12k miles, 6k down, $278 a month 36 months, 12k miles, 6k down, $358 a month. If I put $15k down, I would have saved $428. So 1500 down, lowering the payment that much, that would mean about 55 months… what term is it actually? Basically, if it’s a 36 month lease, over 500 bucks is going somewhere other than the lease (so an increased cap cost likely)… if it’s a 5 year, you are actually getting a slightly better deal than initially proposed. Aug 2, 2024 路 Our focus also included the down payment, preferring deals with low or no initial payment to reduce overall lease costs. With the down payment I will have paid $7100 of the total amount by that 6 month time. Car acquisition fee amount by car brand manufacturer mandate, dealer markup not applicable ($0). What happened on your last lease was that you made a down payment (cap cost reduction, in lease language) which simply prepaid part of your lease balance and reduced your monthly payment. Payments were like $850 a month for 36 months 12000 miles with 2150 of equity. $1000 markup over MSRP was factored into the monthly payment. For example, the website is giving me a payment of $385/mo after a down payment of $4,500 on a 3/30 lease. Multiple payments by the length and add in the down payment. So $600-ish sounds about right. So I had this in mind when comparing the two options. I never really understood why people put money down on a lease. That was worth it. And Mazda leases go through Toyota, who doesn’t tier differently based on down payment. Put as little down as possible. She has currently put 18k of her 36k lease miles on it… I won’t be able to put a down payment on my buyout. The $2k down. You can have $0 down payment but still pay fees The DAS is frequently confused as a down payment by individuals unfamiliar with leasing. Is there any authoritative guidance on how to value capital leases when a down payment is involved, which reduces the capital lease? For a simpler example, if you can get a capital lease for 100k or pay 20k now and get a capital lease for 80k, and you take the second option, how would that 20k be accounted for? Finance a mistake, like I said you really need to do research. As a SWAG example, if you can't get approved for a $379/mo lease with $0 down, putting $3500 down might get your lease payment down to $299/mo where they approve you. $0 down $350 DMV fee $595 monthly payment including taxes (taxes ended up at ~$90/month so paying the taxes upfront would have brought us to $505 for the lease). The lease amount is a set number. My family always leases usually down or no down monthly payments barely vary. $39k is a lot to owe, I’d recommend looking for a used vehicle with between 30-50k miles. It’s a great time to sell right now, you could get pretty close to MSRP depending on the mileage. As others have said, it’s just a matter of what your dealer prefers. That is without a trade, without money down, and 2k over msrp as a selling price. It’s a long drawn out explanation that would be hard to put in a Reddit comment but there’s tons of info out there about when a lease may be the best bet. 00 month If you want comparisons, go over to the Leashackr forum and do some searching. So 36 * $300 is $10,800that means you can only have $10,800 depreciation between adjusted capitalized cost and residual value and that's at 0 Money Factor (0% interest), and that won't happen. I choose base Y with black wheels white interior. The lease liability is the PV of the remaining four payments (33120) and the lease asset is the total of five payments. Being a honda sales consultant for 3 years every 1,000$ you put down on a lease only lowers your payment buy 30$ a month. If you pre-pay any money on a lease it’s like early rent payments for an apartment. You are just “renting” the car. I’ve talked two dealerships and they both had a minimum of 1000 for a down payment, which includes the first month payment. Honda Ford Toyota may do good lease deal too. Restructure so your payment is higher. Amount due at signing includes first month’s payment, customer down payment of $3,499, and acquisition fee of $895. A down payment also obscures the cost of the lease. Math made sense to me in that if I wanted to have a $400 monthly payment while financing, I'd have to out a down payment near $20k with current rates. 898. I read that some dealers are forgiving the penalties for ending a lease early because of the small amount of used cars currently available. Edit: The above example assumes the same car, to keep things constant. Interest payments/monthly payment: First, you'll almost certainly need a down-payment. Any final payments can only be made via Electronic check, Wire Transfer, and Certified Check. Lease this car for 30 months the lease total is $30,000. , lower money factor) if everything is paid at once. Second, you'll have taxes and fees to add to the price. g. Because if we wanted to buy it out at the end of the term, they wouldn't say well that 20k was a down payment and goes poof, so the car still costs 40k to buy out?? Is it also true that putting more down doesn't affect your total payments much? Example: 60k car, 40k lease, 43k in payments over 3 years due to 4. Rule of thumb is to get a monthly lease payment as close to 1% of MSRP as possible ($60,000 = $600 monthly payment) Put as little down as possible on the lease, if possible zero down. Pay it all off within 90 days and you avoid interest completely, making it same as cash. IE: Lets say your monthly payment with $3600 down on a 36 month lease is $200, Wow thats a low payment, but at the end of the lease you've effectively paid $300 a month due to the up front payment. And if something happens to the car, getting back your down payment is nearly impossible. The total cost for leasing the model Y for 3 years is about $21888. The only option you might have is to switch to the SR+ since that will cut the price of overall car cost almost by $12k. I mean, which do you really prefer: spending $1000 on a $1000 PC in one go, or spending $1500 on a $1000 PC spread out over 6-12 months? We would like to show you a description here but the site won’t allow us. These guys all decided to compete with Covid lease pricing instead of regular lease pricing. The difference this makes is that if for example you get out of a 3 year lease after 1 year you’re already out 3 years worth of tax in those states vs in CA and most others you only pay tax on that 1 year worth of payments. true. If renting a car long term sounds appealing to you, go for it. 00375 or 9% on a 36 month lease, even with a 61% residual value, I can seriously put the same down payment on a 6yr purchase and only be out a minimal amount of money at a much lower interest rate. Ever hear the adage that a car depreciates 30% as soon as it drives off the lot? Leases in general suck right now. So, it would be an annuity due for five years or an ordinary annuity for four years - which equal the same. In my case the $2000 down only saved me $15 a month. I was trying to think of creative ways to negotiate a lease payment. Right now a zero down lease sign and drive is probably mid 400’s for a Sentra and that’s the cheapest lease. The Niro leases much better comparatively. I’m moving out of the country for a job and want to turn my lease in. The cost of money on a lease that requires a down is generally not advantageous to you. One month later, it's totaled. Additionally, we calculated the total lease cost, to compare deals accurately. TrueCar: Average lease option is $1,247 per month for a 36-month term, 12,000 miles per year, and $2,000 due at signing CarsDirect: Lease your 2023 Corvette for as low as $1,035 /mo for a 36-month term Edmunds: Estimated $1,229/mo, with $2,229 total due at lease signing 1LT: $1019 Mo, with $0 down leases available Sell the vehicle elsewhere. The reason people say not to put money down on a lease is because if you lease it today and total it tomorrow the down payment money is gone. My girlfriend has a 2019 Honda Civic EXL turbo that she has been leasing for almost 3 years. Hello, I am looking to lease a vehicle over an approximate 5 year term. I don't think OP is talking about a lease at all. So I would have thrown $1460 down the drain. Lease Financed amount $16,500 Residual amount $16,500 Base payment for 36 months + 8% sales tax $495. I was considering extending my lease as I really like my car but I also need a few extra months to come up with a sizable down payment for my next car. Sure it lowers the monthly payment, but in the end you’re still paying the same amount of money as if you didn’t put money down. A down payment is an upfront payment in the form of a cap cost reduction to bring down the sell cost of the vehicle, which in turn reduces your monthly payment. You’ll never get an ID. By putting more down for a lease all you are doing is buying down your monthly payment. So if you're down payment is $10K and your trade-in quote is $5K, you need to update the downpayment field to include both at $15K. I was originally going to lease until I crunched numbers and buying was only $125 more per month and I actually get the $7500 Hi I have always leased/ bought car with zero down. They will accept any credit bureau to use to get a tier bump (720+ is tier 1+). The most common lease is 36mo. Doing a lease is a big mistake, this isn’t the first generation or anything you should just be buying and financing even if it’s a little bit higher payment, if you put $10,000 down on a lease you’ll have no problem with the monthly payments and then you can trade it whenever you want you don’t have to be on there three or because when you buy a car, it's taxed. 0$ money down leases are the way to go 馃憤 You can trade your lease in and get some equity out of it to reduce the lease payments (although I don’t believe in putting money down on a lease). Open to learning different. I was wondering does the $10k go straight to the car manufacture, how much of the cut does the salesman get from the down payment? Also, did I make a mistake by putting such a large down payment? I am a bot, and this action was performed automatically. If you're considering buying an $80k-$100k car and can't figure out how to use a loan calculator to figure out what the payments would be, then you almost certainly can't afford it. An owner told me that Tesla does not finance 100% and we have to pay taxes and fee. You just lost $4620. The caveat on your statement is that some brands offer 1 payment leases that offer more favorable terms (e. For the kind of down payment you’re talking about, you can finance and being a Toyota, it’s going to last you forever. Getting pretty tempted by these current lease prices on the model 3. But if the lease was up next november (for example) -- then I wouldn't have to pay November lease payment. DAS: Variable mandatory costs/fees that are typically paid up front at lease signing, but can be requested to be rolled into the monthly. 6% APR) $98 Total lease payment $593. The F&I guy said this was popular for people paying in all cash, to “avoid having a payment”. 18 month lease, $1000 down, $400 monthly. Which is what I posted. Drive Off usually refers to everything out of pocket including any down payment. Sure your monthly goes lower but it's deceiving. Your end of lease buy out is NOT going to be 40k purchase price minus 16k you paid in lease payments, it’s going to be something like 30k. I am in the market to get into a Range Rover Sport - I'm in Texas. I From the quote sheet, the $7500 does come off as "down payment" and using the LeaseHackr calculator, the math seems to check out - appears they are using a residual of about 56% for a 15k/36. 3, 4WD, crew cab, short bed, bucket seats. My question is this: how does the down payment affect the lease transfer in 6 months time? If I paid the 470 for 6 months, that's $2820 of the total $16920 (470*36) lease amount. 13 votes, 14 comments. You may be tempted to make a sizeable down payment on a lease, as you would when buying and financing a car, but here’s why that may not be a good idea. To put it another way, when you lease you are effectively taking out a loan for the depreciation on the vehicle. $15 a month over 36 months is $540. Wrong. From what I gather, it is discouraged to put down a down payment in a lease. Outside of that, I have to strongly recommend against buying a PC on credit or with a lease-to-own agreement. com I recently signed a bill of sale for a 36 month car lease with $0 down. I know some leasers tend to go with fancier cars b/c payments are lower during the lease. First-time poster so bare with me. Save your money, and own the thing outright. The finance manager at the dealership tried to tell us that the $7,500 gets applied toward the "down payment" instead of the selling price of the vehicle. $50,860 MSRP Total MSRP $50,860Offer cash rebate-$10,000 Estimated cash price $40,860 I see people here on reddit saying that they got deals 300-350 with minimal down payments. (They were the same price a few weeks ago then they raised the two years) I don't really think they're "passing" anything down. 00 Monthly interest based on . Hypothetical. There is no point to putting money down. Plus the 3,000$ would be gone if you totaled the car. If I lease a 2024 car 36 months with say $2k down, is it possible to negotiate that if I lease a second new car with the same dealer, my down payment transfers from car 1 to car 2? I am a bot, and this action was performed automatically. It doesn't carry over to a new lease. I'm a New Yorker currently leasing a 2019 Honda Fit and my lease ends in March. I was not sure if this is true. The difference is a down payment is a reduction in the cost of the car and thus the payment. I’m currently one year into a three year lease. Dealership claimed the monthly payments with 2k down were $500 a month for 48 months from some website they pulled up with not much room to haggle because market conditions and shortages. Actually a lease is almost never a good financial decision. It is generally a bad idea to put money down on a lease to lower payments. I am 20 months in, considering doing a lease buy-out early. even your monthly payments for a lease are taxed. You would definitely get less than 10k because depreciation is front loaded on a car but You put down a minimal amount on a lease that is needed to get the lease approved. maybe make the first payment at signing if you’re so inclined. 5% interest. 54ish residual sounds about right on a bmw and as long as your money factor isn’t too high and you like the car I would go for it. Mar 23, 2022 路 Hi and thank you for the response. ‘Lower’ monthly payment is just a number. Before Covid I got a jaguar xe35t for 3k down 300 a month, after Covid you can get a Corolla for that much. If you pit 30k down on a lease and total the truck tomorrow, that 30k is gone. However the OP added and noted that in order to get the payment to sub $300 a month he put down 10 security deposits totalling $3500 - which are fully refundable at lease end and emphasized that a similar down payment was not (obviously). Aug 2, 2024 路 Securing a $0 down lease deal, which is rare, can save you thousands in upfront payments. That money evaporates at signing, as it is not part of the balance. Minus the 7500 tax credit it comes down to $14,388. For our forester, we wrote the down payment check to the bank and the bank sent the dealer a check for the total-trade. How much if that is “drive offs” which is required payments like registration and first month payments vs cap cost/down payment. Your insurance company pays out to the owner = Kia. To set up higher monthly payments, call Progressive Leasing at 877. $0 Down. You put $5k on a lease to lower your payment by ~140. It doesn't change the residual value of the vehicle or the buyout price at the end. I should have negotiated this number but it was my first lease so lesson learned. I have seen some folks on here getting killer deals on the 2024 AWD SEL trim, with like sub $300 monthly payments and $0 down, but the MSRP on that one I think is slightly lower (like 52. 00266 = 6. I know that even though leasing a car won't give me equity in the car, it'll at least make my monthly payments around $250/month cheaper for the car I want over 48 months vs financing the car for the same duration if I were to put down the same amount. I ended up doing a 36mo lease/12k miles a year. Since I’m still so new to this country, the car dealership told me that I had to put down a down payment to get a car loan. Soooo new car is -7k already. 00/mo with cap cost reduction of $3,000 Total monthly without cap cost (only paid drive offs $1,500) $646. 19. Other than that it seems like an okay deal. It's best to make little or no down payment on a car lease. But don’t put money down on that. . 00150 money factor (about 3. They applied $7500 tax incentive to the lease, honestly unsure of its total impact on my cost. now if you put $3,000 down and total your car in a week you are out that $3,000. You want to put as little down for your lease as possible because you're only renting the car. Aug 23, 2017 路 Making a big down payment lowers your monthly payments and leaves you less likely to be upside down if the car is totaled or you decide to trade in the vehicle before it's paid off. If you definitely want a new car in 2-3 years then leasing likely makes the most sense. You own nothing, so if its stolen or totaled out you wont get any equity back. The last time I bought a car it was a Corolla for $170/month, mid 2000s. On a recent lease deal I paid drive off fees plus a couple hundred bucks to round that payment to $1k as required by the Costco deal. You can't get it with $3,000 down. We would like to show you a description here but the site won’t allow us. Your better off keeping that money in the bank and let it hopefully gain interest. Here's why. These people go after the best deals so you'll know what kind of deal you are getting. You won't see a cent back. 30k spread over that 30 months is 1k/month in lease payments. You don’t have any ownership in a leased vehicle so in the event of an accident you lose that $5,000. Putting larger sums down are not. 5k range). My buyout price is 14k for a 2020 Honda civic leased from a Honda dealership in New Jersey. So its best to do $0 down. I'd avoid ever putting in a down payment on a lease. If the money factor is higher than current money market interest rates, it’s better to put a down payment to offset the interest on the lease, right? Dealers know you (and most people) are focused on the monthly payment, so they can structure a lease with higher up front costs to bring down the monthly payment. There is still tax, title, acquisition fee, etc. I only paid taxes and fees upfront Use Leasehackr website & calculator to calculate deals & check dealer numbers. My general rule with a lease though is always putting down as little money as possible since I’m giving the car back. If you put $5,000 down your payments will be $278/mo ($278x36 + $5,000 down = $15,000). You pay down 3600 upfront plus $500 / monthly payment for 36 month is the same as amount money you have to pay out if your monthly is $600/months with zero down payment. The security deposit is refundable of course - in essence we'd be giving them an interest free loan for the term of the lease. Unfortunately the price is the price no haggling allowed with Tesla. Do not put money down on a lease, ever. Put that across the 36 months and you get 428. Just wondering others thoughts on a lease payment and how they compare. That truck is only actually depreciating like 8k in that time period. Don’t put money down on a lease. Gap insurance covers the Gap between what the bank is owed and what the car is worth irrespective of the down payment. It doesn’t change the total amount of money you are paying out after adding back down payment. Even at sticker, the cheapest lease w zero money down is probably 399 and that’s for a Sentra The payment is lower and if you’re only keeping the vehicle for 3 years, you’re going to have a payment regardless. This is a payment that I would expect with that kind of down payment and no government money added? If you lease a Tacoma your $450 a month payment on a TRD OR is coming out to around 16k paid after 36 months. A Down payment is not DAS (due at signing). It's the same in the end, and just depends where you want your payments to be. Never put money down on a lease. It depends upon region, but when I bought mine last month I looked at lease options and it was cheaper to buy. $6000 down + $685 month payment for 6 years. The days of nothing down and 2-300 a month are gone. Thanks On purchase, it’s just simple math. 1970, they're pretty flexible with payments. Insurance will cover up to market value and GAP usually covers the rest. When you lease you just rent so flat monthly fee for the restrictions on mileage and fees for damage to vehicle. 015 of the total price of the vehicle with zero down. USA. It’s generally recommended that instead of putting a down payment, put that money in a savings account instead and take out $250 every month (6000/24=250), essentially making your payment $650 a month. 4 lease payment down to $300/mo like the Niro unless you put a big down payment. Buying a car with a loan can be cheaper because the loan can have a low interest rate and be extend to 5, 7, or even 10 years to lower the monthly payment. Leasing a vehicle with a down payment – is it a good idea? /u/TheRealMeatloaf. Foy my hyundai lease, I paid one month in advance, doesn't move your payment date but removes it from the end. in FL, the BS fees are like $1300 so that leaves you $9500 lefttake off another $1500 for rent charge so that leaves you $8000. the leasing company charges you the tax that they paid when they bought the car for you to lease. So when I signed the lease, I agreed to a 36-month lease at $215/m and put $1500 down. Given the market conditions I expecter a higher lease rate but when they quote a money factor of . Yeah your payments go way down because for the lease term you were essentially paying the depreciation (roughly 35-45% of the vehicles cost) and is generally for 24-36 months. If you total the car, guess who is stuck with the difference if the lease is upside down? Went in to a local dealership with my wife and sister in law to lease 2 new cars. Someone may say $1100/mo is insane for a car, but for others it’s not a big deal at all. Put 10k down up front, and the remainder (20k) gets spread over 30 months your lease payment would only be $667/month. I would be impressed if OH didn’t charge sales tax on the down payment since usually the tax dept is good at find things to tax. The lease amount (30k) didn't change. The money factor on this deal is so high that you are losing money if you put money down. Is it possible nowadays to get a car under $300/month lease or finance with minimal down payment? The car was $30k after taxes, I put a down payment of $10k, and financed $20k. If say the car is totaled and 50k of value is destroyed, the insurance company has to replace that right? They don't care if 20k to me, 30k to Ford, or all to Ford. I was thinking about putting down 20K on a GTPE lease to reduce the monthly payment. This is a lease, not a loan or credit option, so after completing your payments your credit score will not be affected. The total payment for a 24 month/ 12 miles lease comes to around $14500 for a Limited RWD Be warned Tacomas don’t lease great and as far as I know they never really had, you’ll be looking at a $4-$5k down payment on a fairly basic 4wd sr5 to keep your lease payment under $500 a month. Something seems off to me with them wanting to collect that $1500. It was in the realm of $13k-$17k after my trade in, which was less than just making the purchase but not exactly cheap. This is never advised, as this amount cannot be reimbursed in the event of losing the vehicle to a collision. Edit 2: "w/ large downpayment" is in the title b/c when I finance, I always make a large down payment to keep monthly payments low. I couldn’t get a straight answer from the chat rep and Tesla so was wondering if anyone here would know: Individual credit aside, is the default down payment loaded on the configurator the minimum requirement? Does Tesla allow for less or even zero down payment for a lease? I recently bought an XC40 and was offered the option of doing a “one payment lease” instead of buying it outright. Anything more than taxes and fees on a lease is just buying down the payment. Put that money into a savings account and use it to make your payments. This makes it pretty unattractive compared to a typical lease Imo, since you’re paying for the worst depreciation of the car and will have nothing to show for it at the end of the lease. Let's say for the sake of argument those "parts" amount to $400. Yes, the first payment is due, but no actual down. If I use a DSCR loan, what do you think is the minimum downpayment I need to make here? I’m finding different information online - ranging from 10% to 40%. The bigger your down payment the smaller the loan, the lower your interest accrued, and the smaller the payment (all else being equal, obviously the term of the loan affects the payment size too). You can use our auto loan calculator to see how various down payment amounts will affect Also you usually pay tax on three components: the monthly lease payments, the down payment, and the residual/buy out. The $6k down payment upfront only lowered the payments. A 15k mile a year lease would have saved me roughly $110 in the end. Nissan gives good lease deals not Mazda Mazda is firm very firm. You probably finances the rest for 60 months when you bought it out. Looking at a lease deal for a Crosstrek limited in SoCal. Hello! I am exploring leasing a Hyundai Ioniq 5 with a one time pay lease option. 75. It's $0 down, $478/mo on an MSRP of $55,365, 36 month lease 10k miles/yr limit. Preferably zero. So at the end of the day, if you can afford it, who cares. Here's the problem with down payments on a lease; You're paying the depreciation of the vehicle in 36 equal parts. At the end of the day you will save the interest on the portion you put down, but the total lease payments will essentially be the same. High credit score is going to be a major factor for most things. Before the COVID inventory shortage we are still dealing with, it was 1% of MSRP per month for a 12/36 Lease with only first month payment down. Please advise if we totally screwed up or if this seems somewhat reasonable given the craziness of the market! Swooped in on Jan 3rd for the last day fo their leasing promotion. Reply reply stratys3 However, while I haven’t run the numbers, it doesn’t seem that Tesla is putting the full $7500 Federal incentive into the deals. I’m registered in New York though if that makes a difference. The reason is that you don’t own the car, the leasing company does. With a 10k down payment you'd likely get money back because the amount financed is so small but this has nothing to do with Gap insurance. Last payment would be October and i'd ust ride the lease to Basically, your down payment in the app actually includes your trade in value, it just doesn't explicitly say that. That was the goal. However you are fighting the current state of things where purchase prices and interest rate (moneys factor) is up. It did say 5874 and 679 monthly initially and 2nd one it went to 14k. If you put $5,000 down on a lease and drive it off the lot and gets totaled awesome You get to walk away from the carand your $5000 Sure a downpayment will reduce the lease payment, but you will never get equity on a lease deal. Originally told it would go towards my down payment but I still had to put down the $3750 at delivery to drop my monthly to $580. It’s never recommend to pay towards that on a lease because if something happens to the car you don’t get that equity back. 38% which is about the going rate lately. We like these kinds of deals! Therefore, we review every major car brand's website to identify deals with no money down or those requiring minimal signing amounts. So for example, if the selling price of the car is $58,500, once the lease cash is applied, it brings that price down to $52,000, the amount that you are now financing with the lease. Down payments on a lease don't do anything aside from dropping the monthly payment on the lease. All of which begs the question of how OP can afford such a car and yet confuse a lease for a purchase. With the car market these days hard to gauge what is reasonable and what isn’t based on the last 3 leases I’ve been in, of course pre-pandemic. If you are considering putting a down payment down why not go full ownership not lease. They might not come back. he sure you are clear on the costs of the lease. most leases include GAP insurance which covers the difference between your payoff and value you would get from your insurance in the event that you get into an accident and your vehicle is a total loss - essentially if your car is totaled your car is paid off with a lease. You will have to pay something on signing just dont put anything to the cap cost. No, you can't get the lease special with ZERO DOWN. Down payments on leases are bad ideas because you don't own the car. Not necessarily 780+ but 720+, nothing negative, 2-3 accounts, 2-3+ years history should get you approved for just about anything in the mid range automotive sector (think ~$60k BMW 5-Series, Mercedes E-Class, etc or lower) When I use the online payment calculators I’m not able to find a monthly payment I can comfortably afford for lease or financing, everything is coming back at $450+/month. The first payment was subtracted (but it's not obvious) and the remaining four are the ordinary annuity = 33120 PV. Here are the numbers the dealer gave me: Details: Hi! Looking into purchasing a $100k+ car after taxes. Paying a down payment on a lease is never a good financial decision. To it looks like 5000 down will save you like $700-ish in interest. Obviously the math on money down is in the dealers favor if you have no intent on buying the car at lease end. They are not the same thing. The dealership is trying to get you to focus on the monthly payment. I have the option to put money down in the form of a down payment OR as a security deposit. I am considering putting a 10-13K down payment on a 2023 Hyundai Elantra. when you lease a car, it's bought by the leasing company and then leased to you. $0 down on a lease always. I am obviously starting this whole thing wrong lol. You can use online calculators to determine the cost of money equivalent to APR. It makes more financial sense to invest my money and get better (5-10%) return than pay any down payment to avoid 2. I assume you’re leasing for around 2 years considering the $225 difference the 6k down makes. The only reason people put money down on a lease is to lower their Please expand on this. Down payment is usually referring to principal reduction of the loan. Let's say a 36mo/12k lease cost $15,000 for the 3 years. You can put $0 down payment on a lease, but you still have to pay Jun 23, 2020 路 No, you probably shouldn’t put a big down payment on a car lease. With an 800+ credit score < 5% interest should be achievable right now. Either way I'm okay paying the 14k it's not an issue my only problem is with a lease if there is an accident there is a good chance I wouldn’t get the money back I paid in the down payment for the lease hence why I would want to minimize the downpayment and pay higher monthly. Wife was looking at a Kia Seltos with a msrp just under 25k. You don't put down money on a lease because if you total the car, the money is gone. For example, a 40,000 vehicle lease payment should not exceed 550- 600$ monthly with zero down or maybe 500-1000 down in most cases. One option if you want to use a credit card is to use a service like Plastiq. $2-3k max. 3 months later you total the car. Tesla has stopped allowing any part to be paid for with credit cards. Don't pay the down payment. If I finance the car on a 8 year term, my monthly payments come out to ~$360 but if I lease it on a 2 year term then my monthly payments would come out to ~$110 (all these numbers include the down payment added). Finally, we factored in special offers and incentives from manufacturers, such as reduced interest rates or discounts, which significantly impact We would like to show you a description here but the site won’t allow us. Was looking at a new C43 AMG and liked the car. A $3000 drive is probably referring to first month payment + any I’m a self-employed contractor in Vancouver and plan to lease a car for work. For context someone said they wanted to put $10k on their down payment for their lease, and someone commented that putting $10k down is pointless because if something happened to the car shortly after the lease begins, that $10k is gone. You want $0 down payment and only “drive off” costs. However, a down payment on a lease essentially only “prepays” you lease payments and doesn’t build you equity like a traditional finance loan. From what I see the lease seems too good. Started paying it off then saw i was getting no where, started making one full payment plus one half payment, sometimes a third of a payment every month. We might see 0 down 300 again in another year or two, but 0 down 200 is probably gone forever. You decide not to put $5000 down on a lease but instead put the $5k aside and pu It's better to put zero down. I’m looking into triple net or absolute net leases to help me accomplish this. The residual value of the car at the end of the lease does not change. take off $700 for acquisition fee that That down payment comes out to $200 a month. Good lease? New 2023 Integra, 36 month lease, 470/month all in, 4000 down, 2 years of full service. That is not how lease works. Received several end of year/holiday driven promo quotes at zero drive-off, and prices are similar as expected. That's great, this is what the car should have cost if it launched during a normal time. If you put $0 down, your payments will be $417/mo ($417x36=$15,000). tab fmmeqw zxvtbyvs ixrqrn yjoz jjk ksblqrq orepmk wjcrv imtde