What $0 Down Really Means in Car Leasing Terms

Dealerships can be misleading when advertising a deal as "$0 Down" because it refers to the down payment alone.

Consumers interested in leasing a vehicle with "$0 Down" are still responsible for the first month's payment, license and registration fees, documents fee, and taxes.

So, to put it plainly, you are almost definitely going to have to pay something before you walk out of the dealership to enjoy the new vehicle you are now leasing.

By going with the option of a $0 Down lease deal, you are agreeing to pay less money in the short term by skipping out on the down payment.

To make up this figure, auto financers will sometimes spread out the cost of the down payment amidst the 36 months so it is best to be diligent enough to ask the dealership, "What will my monthly payment be if I paid a down payment?"

You might be surprised to find that the dealership isn't hiding fees so the payment will remain the same.

No two lease deals are the same. The sensible thing to do is read the fine print carefully and raise any concerns you have with the finance associate.

If you find yourself in a situation where you are about to sign a $0 Down lease, think about asking these questions:

By asking these questions, you will confirm the total figure of what you can expect the day you sign your lease and have a better understanding of what is included in that price.

Nobody likes to feel like they've been taken advantage of and consumers have the impression that dealerships are trying to pull the wool over their eyes by using language like "$0 Down."

By educating yourself on what this truly means, you have taken the first step to getting a fair deal and you will feel much better about the new vehicle that is now yours to drive.