$0 down vs. $0 due at signing?

beee513

New to leasing.
I know there is a difference between 0 down vs. 0 due - could someone explain? Which is better? Thank you

kyfdx

beee513 said:

New to leasing.
I know there is a difference between 0 down vs. 0 due - could someone explain? Which is better? Thank you

There isn't a "better".

$0 Due at Signing, means you don't pay anything at lease signing. Even the first payment is rolled into the CAP cost. That would leave you 35 payments for a 36 month lease.

$0 down, means you aren't making a CAP reduction, but paying first payment and fees/taxes upfront. But, $0 down is one of those amorphous terms that can mean whatever someone wants it to mean. You have to ask questions.

beee513

Thank you. So would $0 due also mean the other fees/taxes would be rolled into the CAP cost?

kyfdx

beee513 said:

Thank you. So would $0 due also mean the other fees/taxes would be rolled into the CAP cost?

Yes.. anything not paid upfront gets rolled in.

If you live in a state that taxes the monthly payment, you want to avoid rolling in non-taxable fees (like DMV/government fees). Those are better paid upfront, so they don't get taxed.

beee513

I live in RI. I am a little confused. Are you talking about the state sales tax or something else?
I have a friend who says she gets billed by the lease company separately each year for her local excise/property tax. Honda sends in the tax payment to the town and then they bill her on the monthly statement.

kyfdx

beee513 said:

I live in RI. I am a little confused. Are you talking about the state sales tax or something else?
I have a friend who says she gets billed by the lease company separately each year for her local excise/property tax. Honda sends in the tax payment to the town and then they bill her on the monthly statement.

Yes.. sales tax. Property taxes are separate.

beee513

Can suggest best MA RI dealers?

kyfdx

beee513 said:

Can suggest best MA RI dealers?

You can find dealer reviews, here:
https://www.edmunds.com/dealer-reviews/

isellhondas

It didn't matter if one of my customers wanted to pay zero out of their pocket when leasing or buying a car. This was very easy to do but not always smart especially on non leases. The "normal" cap reduction or down payment is simply rolled into the price of the car! Simple! The problem would arise when the buyer would tire of the car after a couple of years only to learn that they were seriously underwater. On purchased cars I would recommend a 20% down payment. Sometimes this would happen, other times not. On zero down purcheses people in order to mane the payments affordable people would sometimes finance for way too long. I happen to think that a 72 month or 84 month payment is far too long! Even 60 months is too long in my opinion yet this has become the norm it seems.