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I have always owned every car I ever had. My wife has mostly leased her cars, so I'm kinda new to the leasing process. The last car we leased, we put $3,000 down, but it was a luxury car, so I guess I wasn't too surprised. Our finances have changed and the next car (not a luxury car) I would really prefer not to put any money down. Now I see advertisements all the time, lease for $79 a month, but buried in the fine print they want $5,000 down. So the question is it possible to lease a car with nothing down. I realize the higher costs would be rolled into the lease payments.
Yes, in fact, that is the preferred (by many) way to lease. Trying money up (down payment) in a lease is counterproductive to the value of leasing, in my opinion (and may others).
I've leased 10+ cars and have put minimal money down every time. I normally put down 1st payment, doc fee and registration down only. Sometimes I have them roll everything except 1st payment.
Right now you can lease a Honda Civic LX Automatic with $0 down, $0 for first payment for $230/mo. Or a Accord LX for $0 down, $0 for first payment, for $250. 10k miles a year.
Not bad at all if you want reliable, cheap transportation. The Accord's MSRP is $22k. A 60 month loan for $22k at 2% is $385/month.
You can always lease with nothing down assuming you have good credit. All they do is take the money you would have put down and amortize it over the lease period, which raises the monthly payment. As you figured out the majority of those "too good to be true" lease specials are all predicated on a large downpayment. Sometimes, manufacturers offer a zero down incentive program, like the ones VW does with the "Sign and Drive". However, you slice it, leasing is a good option if you're the type of person who can make it work for their situation. The folks who hate leasing and preach against it are the ones who hold onto their cars for 10 years, have felt "scammed" in the past by leasing or just don't understand why you would pay for something you don't "own".
For you, you may want to check out VW, they usually have pretty aggressive lease specials and rates and the fact that they include all scheduled maintenance during the lease period is a nice addition.
Right now you can lease a Honda Civic LX Automatic with $0 down, $0 for first payment for $230/mo. Or a Accord LX for $0 down, $0 for first payment, for $250. 10k miles a year.
10k miles a year seems a little low, the standard is usually 12k a year, and the lease my wife has is 15k a year.
I agree, but some people can make it work. I have 15k/yr on my current lease.
Lets say you need 3k more a year, at .15/mile, that's $450/yr or $37/month.
Or do what I do, get a cheap 10k mile lease and know you are going to drive over that. Then hope/pray your car is worth more than the buyout at the end and don't pay any fees. Works with Subarus here in Colorado, as they are worth gold. Usually have a couple grand in equity after 36 months, even with 45k miles on it.
10k miles a year seems a little low, the standard is usually 12k a year, and the lease my wife has is 15k a year.
Just like money down, length and mileage are all negotiable. Most standard leases are 36 months and 36k miles, but you can literally choose any amount of time and mileage you want, of course that is going to change the price. An extra 2k miles a year on those Honda leases might add another $10-$20 or so a month to the cost. You are however MUCH better off buying the mileage upfront then you are paying for it on the backend.
It's interesting that for leasing, at least in this thread, going no money down seems acceptable and even preferable. In another thread people responded to my suggestion of not putting money down just to reach an arbitrarily lower payment on a purchase as if I were some kind of alien.
After 3 years, if the money laid out is the same, isn't a lessee and buyer in the same basic financial position?
After 3 years, if the money laid out is the same, isn't a lessee and buyer in the same basic financial position?
No, because the whole point of leasing is protection from depreciation and/or loss/theft/damage.
If you total the car on day 5 of the lease, your down payment is gone. Insurance covers the loss and GAP covers the negative equity - you walk away clean. With money down, you've lost whatever down you put.
If the the total nut at the end of the lease is the same, why would you put money down? Its much safer to have that money liquid in the bank rather than tied up in a car.
The above is precisely why I lease - it has nothing to do with lower payments or a new car every few years. Well - new cars are a perk.
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