Are you considering leasing a car in the Big Apple and simultaneously wondering if it is possible to do so with no down payment? It is definitely possible to lease a car with zero down payment – in fact, it is one of the main advantages of leasing a car, rather than purchasing with a loan. Most of the time a loan will require a down payment, often as high as 20% or more if you do not have great credit. Leases, on the other hand, do not usually.
It is important to consult with a licensed New York auto lease dealer regarding the deals available, and how exactly they work. Zero-down does not necessarily mean you are getting a good deal. Sure, leasing the vehicle is suddenly more affordable with no up-front cash, but the cost usually remains the same.
Keep in mind that the monthly lease payment will likely be more without a down-payment than it would be if you actually put some cash up-front. The rule of thumb is, for every $1000 down
ZERO-DOWN VS. AMOUNT DUE AT LEASE SIGNING
So, how does a lease work?
- Sign Lease Papers
- Pay down payment / Zero down payment
- Pay sales tax on down payment
- First month’s payment
- Occasionally pay a security deposit (Returned at the end of the lease)
- Pay any official fees required by the city, county or state.
Essentially, a down payment is just a fraction of the funds required at the time of signing the lease. A frequently misunderstood concept is that the down payment is only a portion of the total costs due at the lease signing, also known as “cash due at lease inception” or “amount due at signing”. Consequently, there is much disparity between the different kinds of zero down deals.
FOUR BASIC TYPES OF ZERO-DOWN LEASES in NY
- You pay absolutely nothing because the dealer has rolled any and all official fees into the lease.
- You pay only the official fees to make no down payments and the car company pays for your first month.
- You pay official fees at the lease signing and the dealer rolls your first month’s payment into the lease.
- You are required to make the first month’s payment and official fees, but not down payment is made so you need money at for the lease signing.
WHAT IS REQUIRED TO GET A ZERO-DOWN DEAL
Obtaining a $0 down deal is usually contingent upon a good credit score. As a matter of fact, even deals marketed as requiring a down payment, are available zero-down with excellent credit. In other words, qualifying for a good zero-down deal is completely dependent on your credit. It is advisable, then, to know your credit score ahead of time to dodge any surprises.
CAR COMPANIES & SPECIAL ZERO DOWN DEALS
So, you are offered a special deal with zero down payment, is it a good deal? Not necessarily. It is in your best interest to assess the deal, even if it appears to be a great opportunity. Zero down and or low payments do not mean it will be a good deal. You may, in fact, end up paying more than others for the exact same car.
Manufacturers often advertise special lease deals with the option of a down payment or without. You may pay a higher monthly payment with a zero down deal, however, the deal remains the same and the lease parameters do not change. In essence, the value of the deal remains consistent regardless of whether you make a down payment or not.
The best zero down lease deals in NYC (Brooklyn, Queens, Staten Island, Manhattan & Bronx) along with the highest grade in customer service are a click away.
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