Car Lease No Money Down? Is it done?

[SupaWmn41]

Hello! 

I could be wrong but I read it's better to put security deposits down on a car lease rather than down payments for a few reasons. I've been on Leasehackr as well and researching but I can't find any DP's on those that have successfully leased with $0 money down, only taxes, title, fees. I'm just considering my options. 
TIA

[Anonymous]

You are correct it's better not to put money down.  

If you do a cap cost reduction of $3,600 and total the car you are out all that money and would have to put that down again on a new lease to get the same deal.

What I suggest is instead of that put the $3,600 in the bank and then transfer $100 a month to your account to offset the higher lease pretty much giving you the same net effect in a more protected mode.

Other most important thing about leasing is some cars lease better than others.   Two $40,000 cars may lease at very different monthly payments.

MSD - Multiple Security Deposit is another option for lowering your payment.  That is fully refundable.

[Horseshoez]

I agree with @Anonymous, never-EVER put money down on a lease.

[4sallypat]

Yes, 100% correct - do NOT put any money down to reduce the cap cost.

Only use your money to pay for TTL, Dealer fee, Acquisition fee, etc...

MSD is the way to go for lowering your MF and guaranteed you get it back at the end.

I have leased BMW & Range Rovers over the years and learned $0 down is the only way to lease - especially if you are turning in the car at the end of lease.  

Of all the cars I have leased (8), I am only keeping one: Honda Clarity PHEV....

[Anonymous]

$0 down lease is definitely doable. I frequent Leasehackr as well, and most of the leasehackr forums end up leasing with $0 down. Don't confuse zero down with zero due at signing. 1st payment is due at signing and many members on leasehackr choose to pay TTL and fees upfront. The past 2 vehicles I have leased have been $0 down and only first payment due at signing.

Leasing is far more nuanced than financing, so just make sure to thoroughly research before signing. Also, if you are shopping at a small dealership you may have trouble finding a salesperson or finance manager that knows anything about leases. This could work in your favor, or could rapidly hault negotiations.

Best of luck!

[Anonymous]

Also, you mentioned MSDs. Some leasing companies do not allow MSDs, I know Chrysler Capital and Honda Finance do not allow for MSDs. If the company does allow for MSDs and you have the money available, it is definitely worthwhile.

[4sallypat]

Correct, some leasing finances will not take MSDs.

Beware of jacked up MF rates - the dealer can mark up a certain amount of MF (lease interest) above what the bank (usually captive) offers.

So it pays to know what the base MF for each bank uses...

LeaseHackr is the best source of info on leasing!

I used them many times and my most recent was a Honda Clarity PHEV which I got for $0 down, base MF (Tier 1), first month + TTL + acquisition fee + tax = $299/month.

[Anonymous]

Can someone explain what ttl is and mf ?

[Horseshoez]

---

@Anonymous wrote:

Can someone explain what ttl is and mf ?

---

TTL = Taxes, Title, and License

MF = Money Factor, essentially the cost you pay for borrowing money  https://en.wikipedia.org/wiki/Annual_percentage_rate#Money_factor

[SupaWmn41]

Wow that is a great deal! Exactly what I'm looking for. 
I've read the dealerships can legally do that markup if they wanted to which stinks. I guess I'll definitely have to do my research. Thanks!