Javascript required
Skip to content Skip to sidebar Skip to footer
Home / Can I Lease a Car Without a Downpayment

Can I Lease a Car Without a Downpayment

car dealer sales car to the customer and they are signing the contract

praetorianphoto Getty Images

Now more than ever, leasing has become a popular option for drivers. Leasing allows you to drive your dream car at a lower cost than the sticker price, making it a great choice when you want to enjoy the latest designs and tech. Finding the best lease deals with 0 down, however, can be tricky, but there are avenues you can explore that can help you drive off the lot in a leased vehicle without breaking the bank.

Best Zero to $99 Car Lease No Money Down Deals 2020

Did you know that some dealerships offer exceptional lease deals ranging from $99 down to no money down? Leasing a vehicle has many benefits, and with so many methods of entering a lease contract, it may be a better deal than financing.

Deciding between leasing and buying a vehicle isn't a straightforward financial decision, it requires weighing the pros and cons. Still, almost everyone needs a vehicle at some point, but not everyone can afford to finance or purchase one outright. Fortunately, many lenders and dealers have come up with innovative ways to make driving the latest models easy and affordable.

This guide will help you learn everything you need to know about leasing a car for the lowest possible down payment.

What Is Car Leasing?

Leasing is often misunderstood, even by car enthusiasts. Simply put, leasing a vehicle means "owning" it temporarily without having to buy it. To lease a car, you enter into a special contract with the dealership that requires you to cover the car's depreciation costs during the time you lease it, which is usually a period of two to three years.

You're also responsible for any additional fees or costs accumulated during your lease. To seal the deal, you'll need to put some money down when signing the lease arrangement, but this deposit is usually much less than the down payment required for buying the vehicle.

Many lease arrangements have limits or specific requirements for the following:

  • Mileage
  • Vehicle models
  • Location
  • Employment history
  • Credit scores

    Plus, since a lease may only be offered on certain trims, the dealership's stock might be limited. That's why it's a good idea to inquire about new leasing offers as soon as they're advertised before the dealer's inventory runs out.

    Whether a dealer offers a no-money-down lease deal or not, it's important to understand two key terms associated with leasing a vehicle:

    • Capitalized cost: The going price for your leased vehicle, which you can negotiate
    • Residual value: The value of the vehicle at the end of the lease arrangement, which is non-negotiable

      For example, let's say the vehicle you want to lease has a capitalized cost of $30,000. Its residual value at the end of the three-year lease term will be $20,000. This means you're responsible for the $10,000 in depreciation plus fees and interest.

      Benefits of Leasing a Car

      There are many benefits of leasing a vehicle, including:

      • Lower monthly payments than financing
      • Owning the latest vehicles more often
      • Fewer repair costs
      • No hassle of selling your used vehicle
      • No need for lengthy loan approvals

        Types of Zero-Down Car Leases

        Leasing a car with no money down is an attractive option, but understanding how leasing works can help you differentiate between a good deal with one with extra hidden costs.

        According to carsplan.com, the four main types of zero-down leases are:

        • No Capitalized Cost Reduction Zero-Down Lease: This type of lease eliminates the "down payment," or capitalized cost reduction expense, but you're still responsible for any fees and the first month's payment at signing.
        • No Down Payment and Dealer Makes the First Payment: Honda and Acura frequently offer $0-down lease options where the manufacturer makes the first month's payment and you can drive off the lot with no money down. Since the company waives the payment, you only pay the initial fees.
        • No Capitalized Reduction Cost and $0 First Month's Payment: A dealer may let you skip your first month's lease payment as an incentive to sign, rolling the payment into the lease and only requiring you to pay your state's fees at signing. This option eliminates both the capitalized reduction cost and the first month's payment, but your subsequent monthly payments will be higher.
        • Zero Due at Signing/Sign and Drive: Perhaps the most appealing lease option is the "sign and drive," which requires no out-of-pocket expense. The dealer simply rolls any fees and payments due into the lease agreement.

          Remember, just because a dealer offers a no-money-down lease doesn't mean it's a great deal. In many cases, the lease arrangement may cost more in the long run in terms of added fees, interest, and increased monthly costs.

          Requirements to Get a $0 Down Lease Deal

          You've probably seen dealers or manufacturers promote their zero-down lease deals accompanied by the phrase, "for well-qualified customers." That's because these lease arrangements are only offered to customers with exceptional credit scores.

          Anyone hoping to land a no-money-down lease should know their credit score before visiting the dealership and, if necessary, work to build it up before applying.

          Best Car Lease Deals This March

          This month, the 2020 Honda Civic has been one of the best lease deals. For just $199 down, you can enjoy the Civic's quick acceleration, versatile cargo hold, and crisp handling for 36 months.

          Best Bang for Your Buck Lease Deals ($0 Down)

          According to realcartips.com, the best zero-down lease deal at the moment is the 2019 Chevrolet Silverado 1500 LD. This popular truck is offered at $314 per month with no money down.

          Other great lease deals for this month include:

          • 2020 Ram 1500
          • 2020 Jeep Gladiator
          • 2020 Lexus IS
          • 2020 Toyota Tundra
          • 2020 Jaguar F-Type
          • 2020 GMC Terrain
          • 2020 Jeep Renegade
          • 2020 GMC Acadia
          • 2020 GMC Sierra 1500
          • 2020 Jeep Grand Cherokee
          • 2020 Chevrolet Equinox
          • 2020 Buick Enclave
          • 2020 Toyota Tacoma
          • 2019 Jeep Wrangler
          • 2020 Jeep Wrangler
          • 2019 Nissan Frontier
          • 2019 Toyota Tacoma
          • 2020 Jeep Cherokee
          • 2020 Chevrolet Silverado 1500

            With so many great vehicles made more affordable with lease arrangements, why not drive the latest model?

            Information and research in this article verified by ASE-certified Master Technician Duane Sayaloune of YourMechanic.com . For any feedback or correction requests please contact us at research@caranddriver.com .

            Sources:

            http://www.realcartips.com/news/0957-best-lease-deals-now.shtml

            https://carsplan.com/99-car-lease-no-money-down/

            https://bestevleasedeals.com/

            https://www.caranddriver.com/news/a31001005/2020-honda-civic-type-r-logr-app/

            https://www.caranddriver.com/research/a31268694/is-lease-car-insurance-more-expensive/

            This content is created and maintained by a third party, and imported onto this page to help users provide their email addresses. You may be able to find more information about this and similar content at piano.io

            Can I Lease a Car Without a Downpayment

            Source: https://www.caranddriver.com/research/a32879312/best-lease-deals-0-down/