What are the advantages and disadvantages of making a down payment on a lease?
A.. Making a down payment can substantially reduce your monthly payment amount. If you think you might ever want to end your lease early, an initial down payment can reduce or eliminate the cost of early termination. Many promotional lease deals require a specific down payment amount in order to get the deal. Some people mistakenly think that a down payment is a kind of deposit that you get back at the end of the lease. Not true.
A. Making a down payment can substantially reduce your monthly payment amount. If you think you might ever want to end your lease early, an initial down payment can reduce or eliminate the cost of early termination. Many promotional lease deals require a specific down payment amount in order to get the deal. Some people mistakenly think that a down payment is a kind of deposit that you get back at the end of the lease. Not true. Having said the above, a disadvantage of a down payment is that, should your vehicle get stolen or totaled in an accident, you probably won’t get any of the down payment returned to you.
Related Questions
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- What are the advantages and disadvantages of making a down payment on a lease?
