Down payment is one of those thigs people seem to end up neglecting when taking a new car lease. But this is one of those mistakes that you might want to avoid at any cost. Down Payment refers to that payment that you have to make upfront for the car lease. So, here are some things you might want to keep in mind about it to make the best decisions whenever it’s concerned with your car lease!
Also, keep in mind that this down payment Is generally made when initially leasing a car. When someone does a car lease transfer or a car lease takeover, it might or might not be part of your deal- depending on how the negotiations go.
- Paying Too Much Puts You at Risk: While it might be tempting to pay off a lot of it at first, keep in mind that you’re leasing a car and not buying it. Should the car get stolen or anything as such, you’re going to face a loss of the initial down payment. It is generally advised that you stick to paying as much as is required by the terms of the deal to minimize the chances for potential loss.
- Difficulty in Comparison: A Down Payment makes the lease difficult to compare. Should you choose to pay a huge amount from the very beginning, the lease could be a lot lesser than the other offers where you don’t have to make much of a down payment.
- Makes car lease transfer almost impossible: Usually, an initial down payment has to be paid by the person directly leasing the car. If car lease transfer is what they have in mind, it might be seemingly harder with the down payment because he would either have to raise the overall price or charge the next person the same amount or a part of it, which they might not be willing to pay.
- There are deals available without a down payment: Yes, Zero Down is the magic word that exists in the realm of car leasing! Several people recommend that this is by far the safest and most risk-free choice that you can make with your money. This also leaves open for you the options of car lease transfer and car lease takeover later on!
So, the bottom line is that, you must always be careful as to how much you pay. While some people suggest reducing a little of the total amount with an initial down payment to keep the monthly payment lower, some people suggest enduring it for the sake of the excess security it provides for your money.
At the end of the day, however, you’re the one making a choice and you must consider all the possible alternatives before you finally come to a conclusion. Thank you for taking your time in going through our article and we really hope that you found it to be helpful!