Down Payment

One of the many reasons people choose to lease a car is the freedom on the size of down payment. Making a big down payment may not give you a huge financial relief in the longer run. Though making a sizeable down payment will reduce your monthly lease payments it probably won’t save you a ton of money. It is because a low money factor translates to negligible interest charges. In addition, shoppers with good credit won’t need to make a big down payment to be approved for the best deals.

If you want to determine if a large payment is right for you then compare the offers with down payment and no down payment. Compare the total outlay during the lease period. Multiply the monthly payment by the number of payments due and combine that with down payment amount, including the startup costs. Compare the total lease costs to make a decision. Making a down payment often makes sense if you are leasing a vehicle with high selling price and a high money factor.