Are you sold on no money down car leases? Don’t be just yet. Here are the things that you need to know about no money down car leases and find out if this is indeed right for you:
1. A no money down lease is not exactly cheaper and lighter on the pocket. At first glance, it may seem like an alluring proposition in terms of car ownership. Imagine paying no money down at the start of the lease and still end up paying less than $200 or $300 a month for a new car. In truth, paying even just a small down payment will further lessen your monthly payments.
2. If the dealer offers you a no money down car lease then you should first consider the normal lease offer for the car. Car dealers will end up making more money on a no money down lease as they will recuperate their profits over the life of the lease term.
3. Understand the fact that a lease deal with no money down may come with a higher than normal interest rate. Of course, car dealers and lenders incur more risks if you decide not to make a down payment. A no money down lease deal will also mean that you are paying more for the car as there is no capitalized cost reduction to help reduce the amount of monthly payments.
Learn the best car lease deals in the market and find out how a moderate down payment may help further reduce the costs associated with car leasing.