Question about Amount Due at Signing for Lease

andyncar

I'm new to the US and would like to know how an amount due at signing is used in leasing. For example, saying I put $3,000 as an amount due. Except some tax, DMV then the remaining would be still $2,000. Is that refundable after my lease ends. If not, how is this amount used? How much of an amount should I put?


Your advice would be greatly appreciated.

Mr_Shiftright

THIS TUTORIAL might answer your questions.

kyfdx

andyncar said:

I'm new to the US and would like to know how an amount due at signing is used in leasing. For example, saying I put $3,000 as an amount due. Except some tax, DMV then the remaining would be still $2,000. Is that refundable after my lease ends. If not, how is this amount used? How much of an amount should I put?


Your advice would be greatly appreciated.

1st payment
Acquisition fee
DMV fees

Then, the balance is used as a CAP cost reduction. This lowers the adjusted CAP cost, and the payment. It's basically pre-paying part of the lease. Nothing is refunded, as it's applied towards costs.

Ideally, just pay first payment and DMV fees upfront.