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Sunday, June 1, 2025
Tuesday, May 20, 2025
Lease - keep your down payment low because your lease amount is the Same
If you have great credit and plenty of cash, it is generally better to keep your down payment low when leasing a car rather than making a large down payment like $10,000. Here’s why:
Lowering your monthly payment with a large down payment does not reduce the total cost of the lease.Whether you put $0 or $10,000 down, the total amount paid over the lease term is about the same—the down payment just shifts when you pay, not how much you pay overall24.
Leasing does not build equity. Unlike buying, you do not own the car at the end of the lease, so a large down payment is not recouped56.
Risk of loss if the car is totaled or stolen. If the vehicle is wrecked or stolen early in the lease, your down payment may not be fully reimbursed, even if you have GAP insurance6.
Most experts recommend putting as little down as possible on a lease, only enough to meet the required upfront costs and keep monthly payments manageable567.
Bottom line: With strong credit and sufficient cash, you should generally keep your lease down payment to the minimum required. This approach protects your cash and reduces risk without increasing your total lease cost24567.
Citations:
- https://www.toyotaplace.com/finance/buying-vs-leasing/
- https://www.reddit.com/r/askcarsales/comments/1dft3w1/why_no_down_payment_for_a_car_lease/
- https://cars.usnews.com/cars-trucks/car-loans-and-leasing/car-lease-calculator
- https://www.edmunds.com/car-leasing/should-you-make-a-down-payment-when-you-lease.html
- https://www.autotrader.com/car-shopping/whats-right-down-payment-car-loan-or-lease-212702
- https://www.lithia.com/research/car-leasing/should-you-make-a-down-payment-when-you-lease-a-car.htm
- https://www.dmautoleasing.com/blog/pros-and-cons-of-a-down-payment-on-a-car-lease/
- https://www.victorysanbruno.com/buying-vs-leasing/
Answer from Perplexity: pplx.ai/share