Leasing has a lot of benefits, and the possibility to take a car without paying anything at signing the contract is one of them. It differs from financing where down payment usually becomes a prerequisite.
You might have seen such offers as Ford lease deals at $0 down payment, for example, and perhaps thought about how it can be implemented. Well, let’s explore this feature and define if it is for your or paying some money at the moment of signing a lease contract seems to be more reasonable.
Zero Down Car Leases – What Is It and What Are the Types
In fact, zero down payment means just what it sounds like – getting into a new car without paying anything at the moment you are signed up. However, leasing companies can use this term in other cases when you still have to deposit some cash at the beginning of the contract.
Сегодня lessees can choose among four types of zero-down lease deals:
- No Capitalized Cost Reduction: In this case, a lessee doesn’t make a down payment, as the company regards it as eliminated. However, you have to pay the first month of your contract and appropriate official fees if there are any. As you can see, money is still withheld from the very beginning in this case.
- No Capitalized Cost Reduction + Zero First Month Payment: When this type of option is applied, the lessor includes down payment into your further payments and gives you the opportunity to skip the first payment at signing the contract. Still, you need to pay official fees, so make sure you take some cash with you.
- Zero Down Payment + First Payment from the Dealer: Some car makers are loyal enough to take over the first monthly payment, and the down payment is not required at all. These deals are among the most lucrative, though few manufacturers offer this incentive today.
- Zero Due/Sign and Drive: It is a pure zero down payment lease! You really don’t pay anything to get behind the wheel, and the first payment is made within the next month following the month of signing.
As you can see, there are some intricacies that imply paying some money even if the deal is positioned as a zero-down lease. To avoid misunderstanding, figure it all out at the moment of negotiating your deal. Reliable companies like Grand Prix Motors, an auto brokerage firm from Brooklyn, for example, always highlight all the terms of the contract, so you see at once if you pay something or not at the moment of signing.
When Zero Down Payment Can Help?
As a rule, this feature becomes a lifesaver for those who do not want to miss a profitable leasing offer and at the same time does not have the opportunity to scrape together several thousand dollars at once for the first installment. If this is temporary financial difficulties and you are quite willing to make slightly increased payments in the future, zero down lease is just what you may like.
Why Zero Down Lease Is Not What You Need?
Despite the obvious benefits of the feature, there are situations where it is worth giving up and entering the lease on the usual terms.
The first reason to sign up for a lease with a zero down payment are the smaller monthly fees in future! Yes, the outstanding payment does not dissolve completely; lessor just distributes it for the entire leasing period in equal shares, so that increased payments are quite logical in this case. If this is not what you are looking for and you can afford to relieve a part of your obligations at once, take the opportunity.
Besides, zero down payment may be just unavailable to you because of your poor credit score. Лизинговые компании нередко предоставляют услугу индивидуальным порядком и только так называемым qualified customers whose scores are excellent. If it is not your case, then there are fewer chances to get behind the will without paying anything at the moment of signing.
How to Get a Zero Down Lease Offer?
If the idea of not paying anything at the time of the transaction still seems attractive to you, it’s time to do what’s necessary to qualify for a lease on these terms. Experts of Grand Prix Motors give some helpful tips:
- Build up your credit score: The best way to do it is to make all your payments on time. Leasing companies track compliance with obligations, so try to show your reliability.
- Pay out all current obligations – or at least most of them: You may not qualify if you still pay a lot on some other financing agreements. Close your debts or a bigger part of them to get more chances.
- Find the right moment for a zero down leads: There are periods when leasing companies are more willing to offer options like this. The most typical situations are subcompact and compact car leases and taking vehicles of past model years.
As you see, there is nothing too intricate in zero down payment lease deals and if you are sure it will provide a more comfortable leasing experience, just try it with a reliable dealer!
