Is a Zero-Down Lease Right for Me?

This time of year is often when people lease a new vehicle. If you do your research, you’ll probably find a lease option right for your budget, and during that research, you’ll probably come across information about zero-down leases. Here are the facts you need to decide if a zero-down lease is right for you.

What Is a Zero-Down Lease?

The term zero-down lease means exactly what it says. You aren’t required to put a down payment on the vehicle to lease it. All you have to pay is the monthly fee of leasing the vehicle. When you choose a zero-down lease agreement, it usually means that the monthly payments will be higher to make up the cost. This is attractive for some people and unattractive for others. One thing to keep in mind: you don’t necessarily have to look for a deal that’s advertised as a zero-down lease. Most vehicles can be leased for zero down if you make it clear that that’s the deal you want. Do pay attention to the different types of zero-down leases.

  1. There’s no down payment, but you will have to pay the first month’s payment up front as well as official fees.
  2. Your first month’s payment may be rolled into your lease. When this happens, the rest of your monthly payments are slightly higher.
  3. You make no down payment, and the vehicle’s manufacturer cover the first month’s payment. All you do is pay official fees.
  4. Your official fees and any other expenses are rolled into your lease. This makes your payments higher, but you leave the lot without paying anything.

Who Should Get a Zero-Down Lease?

A zero-down lease is not for everyone. If you have some money you can afford to put down, then go ahead and do that. Your monthly lease payments will be far lower. Zero-down leases are great for people who cannot afford a down payment but have a steady enough income to pay the monthly payments.

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