money factor –

If you want a new car and you choose a car lease, then it is possible you could obtain a zero down car lease, especially if you are interested in one. Auto loans with zero down are not that possible. That’s because car leases are designed with the intention of covering the initial depreciation while loan payments focus on helping you to cover the loan payments and also the interest involved. The cost of a five year car loan is definitely higher than the depreciation you will have to cover during a two-year lease term.

If I got you interested in a car lease, zero down, you should first of all choose a car for which the depreciation value will be as little as possible. With a low depreciation, you will be able to benefit from monthly lease payments that will not require a down payment. In other words, you should avoid leasing a car that depreciates seriously over the time.

Secondly, you should try to negotiate with the leasing dealer the capitalized cost of the car lease (the car’s price). The negotiation will be harder to handle, because the matter is more complicated than in the case of a standard purchase price of a car. If this cost is low enough, lower than the MSRP (Manufacturer Suggested Retail Price) of the car, the dealer will be more inclined to offer you the possibility of a car lease, zero down.

Car Lease Zero Down

Thirdly, consider negotiating a lower money factor that can be compared with the interest you are obliged to pay to a company if you were purchasing the car from a dealer. As a result, its value should be similar to the interest rate of an auto loan. Moreover, if the buyer’s credit history is not that clean, the money factor offered by the dealer might be higher.

Fourthly, if you would still need to pay a down payment, because the monthly lease payments don’t cover the depreciation, you should offer to pay a higher monthly payment. That’s another way you can benefit from a zero down car lease or you can take advantage of the monthly special lease deal offered by many car manufacturers.

April 2011 is a good month for leasing a car and even getting a zero down car lease. One possibility would be the Honda Civic, available for a monthly payment of $260 and no down payment over 36 months (meaning a LVR of 1.02%). Another car lease that can be considered an excellent deal is the lease of the Buick Regal CXL for a monthly payment of $294 and no down payment, the lease term being of 39 months. If you are willing to check out a car lease that involves a down payment, you should know that for a down payment of $2499 you can lease in April a Toyota Camry Hybrid. The monthly payment involved will be around $249 for 36 months at a LVR of 1.03%.

Always try to find a lease that doesn’t involve a down payment, because this down payment is actually a ploy used to make you consider that your monthly rates are lower. That’s why you should be more interested in the average car payment figure for the lease deals that are announced each month. But there are still many car manufacturers on the market that are offering zero down car leases, each month, for their newest models. They are interested in attracting more customers by offering these incentives and you are a client that pays attention to budgets and special offers. Don’t be afraid to negotiate either.

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