Nov 132010
 

What do you mean by a No Money Down Car Lease?

No Money Down Car Lease

No Money Down Car Lease

0 Down lease specials are the way to go. SO, what is a 0 Down Car Lease? A number of people have asked me why I don’t do a monthly column dedicated to only, no money down car lease offers. I guess this wouldn’t be a bad idea. Up until now, I’ve refrained from emphasizing this leasing method as an option, because all car lease offers can and should require no money down. A Down Payment on a car lease is really just a marketing ploy to make your monthly payment look lower. When you average your down payment into the total cost of all your payments, you will see that it really doesn’t work that way. That is why I display an Average Car Payment figure for the Monthly Car Lease Specials each month. Unlike putting money down on a Car Purchase, a down payment on a lease will make very little difference in reducing the total cost of your loan. Why not keep your down payment in your savings account? You can always pull some money out to make the payments as you need them. Someone on another forum once mentioned to me that Cash is King when buying a car. That is exactly why you should keep as much of your cash as you can. While only Honda, Mazda and Volkswagen are advertising No Money Down Lease offers for November, these 0-down car lease offers are available for any car that’s lease-able. Just ask.

Example: 0 Down Lease Specials

To illustrate my point above: The Honda Accord LX leases for $260.00 a month with 0-Down Payment. This $22,700 car can also be leased for just $199.00 if you’re willing to put $2,399 down. This means that for every $1,000 you put down, you’re reducing your monthly payment by about $25.00. That is pretty typical for a $20,000 to $25,000 car. What makes the Honda, No-Money-Down-Lease even more special is the fact you don’t make a first payment at all, then make only 35 payments, thereafter. The total cost over 3 years to lease the Honda Accord LX with 0-Down is $9,100. The total cost to Lease the Honda Accord LX with $2,399 down is $9,563.00. So, if you think it makes you feel better to have a $199.00 payment instead of a $260.00 payment, remember it’s going to cost you $463.00 more over the course of 3 years. Granted, not all 0-down car lease offers are this favorable. Generally, you can expect your total cost to be about the same over the term of the lease. My preference is to never put any money down on new car leasing. With that said, I decided to do a comparison table of the November Car Lease Specials. I’ve taken the advertised Lease Specials from the Car Makers and estimated what your monthly payment would be if you made no down payment. Keep in mind, this is an estimate only, but it should serve as a ball park guideline when negotiating with your Dealer. Keep in mind, the $25.00 per $1,000 down rule of thumb.

A No Money Down Car Lease Comparison

# Sedan Term Down Payment Payment Nothing Down
1 2011 Cadillac CTS RWD 3.0L 39 $1,949.00 $349.00 $420.00
2 2011 Buick Regal CXL 39 $1,989.00 $249.00 $300.00
3 2011 Mazda I Sport 5DR-AT 42 $0.00 $239.00 $239.00
4 2011 Honda Civic VP 36 $0.00 $210.00 $210.00
5 2011 Honda Accord LX 36 $0.00 $260.00 $260.00
6 2011 Subaru Legacy 36 $1,498.00 $199.00 $239.00
7 2011 Honda Accord LX, #2 36 $2,399.00 $199.00 $260.00
8 2011 Mazda I Sport 4DR – AT 42 $0.00 $209.00 $209.00
9 2011 Cadillac SRX Crossover 39 $2,229.00 $399.00 $485.00
10 2011 Honda Civic VP # 2 36 $1,999.00 $159.00 $209.00
11 2011 BMW 328i xDrive CPE 36 $499.00 $499.00 $275.00
12 2010 Nissan Altima 2.5S 39 $2,999.00 $199.00 $265.00
13 2011 VW CC Sport 36 $0.00 $359.00 $359.00
14 2011 Buick Enclave FWD 39 $2,359.00 $399.00 $485.00
15 2011 Buick LaCrosse CXL 39 $1,629.00 $309.00 $359.00
16 2011 Toyota  Highlander SE 36 $2,159.00 $379.00 $449.00
17 2011 BMW X6 xDrive50i 36 $909.00 $909.00 $909.00
18 2011 VW Tiguan S 36 $0.00 $329.00 $329.00
19 2011 Subaru Impreza WRX 48 $1,998.00 $299.00 $349.00
20 2011 Subaru Outback 42 $1,979.00 $279.00 $329.00
21 2010 Toyota Matrix 36 $2,199.00 $229.00 $274.00
22 2011 VW Jetta S 36 $0.00 $239.00 $239.00
23 2010 Nissan Rogue S AWD 36 $2,449.00 $239.00 $295.00
24 2010 Toyota Venza FWD 36 $1,999.00 $379.00 $439.00
25 2011 Nissan Juke S AWD 39 $2,449.00 $269.00 $345.00
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