my lease deal
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From: So Cal
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I've read about that many times but like I mentioned I'm somewhat confused about the whole leasing deal. so when you say you shouldn't put anything down. does that mean you walk into the dealership sign paperwork, drive the car home and wait for your bill to arrive a month later? not even first month's payment or anything?
The main reason why it's a bad idea is if anything were to happen to your car such as being totaled or stolen your insurance would only pay what is remaining on your lease. Because you made a down payment you'll lose that cash. GAP insurance would not cover that either since it's designed to cover the difference between what an insurance company says your car is worth vs. what's owed. If you're really desiring to put money down to lower the monthly costs then look into a Multiple Security Deposit (MSD) which can be explained through searching threads on this forum or others.
When I did my lease I was able to leverage the owner's loyalty program for $1000 rebate. They could have applied it as a down payment. Instead they applied it toward bank fees and first month payment. It wasn't even necessary to tell them since I've leased before with the dealership and they know putting money down on a lease is usually foolish. I drove off the lot without making any payments and won't do so until the first bill arrives.
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Joined: Sep 2007
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From: So Cal
No, when people talk about putting money down on a lease they're referring to a cap cost reduction thus lowering the negotiated price of the car resulting in a lower monthly payment.
The main reason why it's a bad idea is if anything were to happen to your car such as being totaled or stolen your insurance would only pay what is remaining on your lease. Because you made a down payment you'll lose that cash. GAP insurance would not cover that either since it's designed to cover the difference between what an insurance company says your car is worth vs. what's owed. If you're really desiring to put money down to lower the monthly costs then look into a Multiple Security Deposit (MSD) which can be explained through searching threads on this forum or others.
When I did my lease I was able to leverage the owner's loyalty program for $1000 rebate. They could have applied it as a down payment. Instead they applied it toward bank fees and first month payment. It wasn't even necessary to tell them since I've leased before with the dealership and they know putting money down on a lease is usually foolish. I drove off the lot without making any payments and won't do so until the first bill arrives.
The main reason why it's a bad idea is if anything were to happen to your car such as being totaled or stolen your insurance would only pay what is remaining on your lease. Because you made a down payment you'll lose that cash. GAP insurance would not cover that either since it's designed to cover the difference between what an insurance company says your car is worth vs. what's owed. If you're really desiring to put money down to lower the monthly costs then look into a Multiple Security Deposit (MSD) which can be explained through searching threads on this forum or others.
When I did my lease I was able to leverage the owner's loyalty program for $1000 rebate. They could have applied it as a down payment. Instead they applied it toward bank fees and first month payment. It wasn't even necessary to tell them since I've leased before with the dealership and they know putting money down on a lease is usually foolish. I drove off the lot without making any payments and won't do so until the first bill arrives.
ok, that makes good sense. So what would you recommend for me, where I don't qualify for the $1000, only $500 rebate??? again, excuse my ignorance, but I really want to figure this out.
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Sep 29, 2015 04:07 AM