What is the difference between “lease inception” amount and “down payment?
A. This often causes misunderstandings. Lease inception amount (same as “due at signing” or “drive out” costs) include all the charges that require up-front payment, such as taxes, fees, deposits, first month’s payment, and down payment. Notice that “down payment” is only part of the total “lease inception” amount. The down payment amount is the only part that reduces the capitalized cost (amount financed) of the lease, which reduces the monthly payment amount.
A. This often causes misunderstandings. Lease inception amount (same as “due at signing” or “drive out” costs) include all the charges that require up-front payment, such as taxes, fees, deposits, first month’s payment, and down payment. Notice that “down payment” is only part of the total “lease inception” amount. The down payment amount is the only part that reduces the capitalized cost (amount financed) of the lease, which reduces the monthly payment amount.
